GameStop Board Votes to Add Bitcoin as Treasury Reserve Asset

GameStop said in a Tuesday (March 25) press release that its board voted unanimously to add bitcoin as a treasury reserve asset.

The retail gaming destination also announced this update to its investment policy in a Form 10-K filed Tuesday with the Securities and Exchange Commission (SEC), saying that a portion of its cash or future debt and equity issuances may be invested in bitcoin.

“We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire,” GameStop said in the Form 10-K.

The company said in the filing that its bitcoin strategy has not been tested and may prove unsuccessful, and that the firm is continually examining the risks and rewards of its strategy.

“The Bitcoin markets have historically experienced significant volatility in price, limited liquidity and trading volumes, relative anonymity, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges and other risks inherent in its entirely electronic, virtual form and decentralized network,” GameStop said.

GameStop announced this move on the same day it reported its fourth quarter and fiscal year 2024 results and said it would not hold a conference call on Tuesday.

The company said its net sales totaled $3.823 billion in fiscal year 2024, down from $5.273 billion the previous year. Its net income was $131.3 million, up from $6.7 million in fiscal year 2023.

During the fourth quarter, GameStop completed its divestiture in Italy and its wind-down of store operations in Germany, according to the Tuesday earnings release.

The gaming retailer has been facing challenges as it adjusts to the rise of digital distribution and changing consumer behavior, PYMNTS reported in December.

GameStop CEO Ryan Cohen has been cutting costs and streamlining operations as he works to revive the struggling brick-and-mortar business, CNBC reportedTuesday.

The report noted that GameStop’s plan to buy bitcoin with its corporate cash is a strategy made famous by MicroStrategy, which is now known as Strategy. That firm saw a rapid but volatile rise in its stock after it invested billions of dollars in bitcoin and became the largest corporate holder of that cryptocurrency.