GameStop Board Approves Bitcoin Investment Plan Following Strong Quarterly Results
GameStop has announced plans to invest corporate cash in Bitcoin following unanimous board approval. The video game retailer revealed this strategy on March 25, 2025, causing its stock to jump more than 6% in extended trading.
The company plans to use a portion of its cash reserves or future debt and equity issuances to purchase Bitcoin and U.S. dollar-denominated stablecoins. As of February 1, GameStop held nearly $4.8 billion in cash, a significant increase from $921.7 million a year earlier.
Rumors about GameStop's Bitcoin plans first emerged in February when CEO Ryan Cohen was spotted meeting with Michael Saylor, Strategy's executive chairman. The company had previously ventured into cryptocurrency with digital wallets in 2022, though this service was discontinued in 2023.
According to GameStop's fourth-quarter earnings report, the firm has not established a maximum limit on its potential Bitcoin purchases. This move follows software company Strategy (formerly MicroStrategy), which has become the largest corporate holder of Bitcoin after buying billions of dollars worth of the cryptocurrency.
Just a few days before GameStop's announcement, Strategy revealed it had acquired an additional 6,911 Bitcoin for $584 million, bringing its total holdings to 506,137 BTC. These coins were purchased at an average price of $84,529 each, with total holdings acquired at approximately $33.7 billion.
The announcement confirms CNBC's February reporting about GameStop's intention to add cryptocurrencies to its balance sheet. CEO Ryan Cohen has been working to revitalize the struggling brick-and-mortar business through cost-cutting measures and streamlining operations.
In its SEC filing, GameStop acknowledged potential risks: "Bitcoin is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful."
The news comes as Bitcoin has experienced recent volatility:
- Reached an all-time high above $100,000
- Currently trading at approximately $88,000
- Down about 18% from its record peak
Investors also responded positively to GameStop's improved financial performance. The company reported fourth-quarter net income of $131.3 million, more than double the $63.1 million earned during the same period last year.
