GameStop Just Pulled a MicroStrategy, as the company whose meme stock is every retail investor's favorite, said Tuesday it will start buying Bitcoin with corporate cash.

GameStop's board signed off on the plan unanimously, according to CNBC. The announcement confirmed reporting from February that the video game retailer was looking to add Bitcoin and other crypto to its balance sheet.

GameStop (NYSE:GME) announced plans to begin investing in Bitcoin (BTC) from its corporate treasury, a move that follows a similar strategy employed by MicroStrategy (NASDAQ:MSTR) to great success.

The company’s board of directors approved the plan unanimously, CNBC reported.

The move comes after rumors swirled earlier this year about GameStop adding Bitcoin and other cryptocurrencies to its balance sheet.

After the announcement, shares of GameStop rose over 6% in after-hours trading.

Earlier this year, the company said it had cash reserves of around $4.8 billion, which it plans to utilize for Bitcoin purchases. Additionally, GameStop mentioned the possibility of future debt or equity offerings to allocate more funds toward Bitcoin. However, no limits were set on the amount of Bitcoin the company intends to acquire.

GameStop’s strategy closely resembles the approach taken by Michael Saylor at Strategy, where the firm has been accumulating Bitcoin since 2020. During this period, Strategy invested billions and transitioned from a software company into a primary corporate Bitcoin holder.

As a result of this move, Strategy’s stock price experienced significant growth, although it was accompanied by substantial volatility.

This plan is part of a broader effort by CEO Ryan Cohen to transform GameStop from a struggling brick-and-mortar chain into a leaner, cash-rich entity. Since joining GameStop’s board in 2021, Cohen has been reducing spending and simplifying operations with the aim of achieving profitability, even if it means sacrificing business growth.

The company’s recent financial performance has been promising. For the fourth quarter, GameStop reported net income of $131.3 million, more than double the $63.1 million it earned in the same quarter last year.

Cohen, who co-founded the pet e-commerce site Chewy, took a stake in GameStop in 2020, shortly before the company became the face of the meme stock trading frenzy.

Investors flocked to the stock, optimistic that Cohen’s online retail experience would help propel the company into the modern era. However, the transition has not been without its challenges, as GameStop struggled to adapt to changes in how gamers allocate their spending.

Despite the challenges, Cohen has successfully maintained a strong cash position for the company. As of November 2, 2023, GameStop had cash reserves of $4.6 billion, according to a December filing with the Securities and Exchange Commission. The company plans to use this cash for investments, which will now include Bitcoin.

While the company’s foray into crypto might seem surprising, it previously launched crypto wallets for managing digital assets and NFTs. However, that service was later shut down amid regulatory concerns.

Last month, Cohen posted a photo on X with Saylor, the chairman of Strategy and a prominent figure in the corporate Bitcoin movement. However, according to CNBC, Saylor is not involved in GameStop’s crypto investment decisions.

In December 2023, GameStop’s board approved a new investment policy that grants Cohen and two independent directors authority to manage the company’s investment portfolio. Other staff members can be included as needed. All investments must adhere to the provisions of that policy, unless a three-member committee of the investment managers votes unanimously or the full board approves by a majority vote.

This signifies that the new Bitcoin initiative had to pass through that filter, which it did unanimously. However, the company did not disclose the timing of its first Bitcoin purchase or the total amount it plans to invest in the cryptocurrency.