GameStop joins corporate bitcoin trend as board approves crypto asset strategy with open ceiling
GameStop has announced on Tuesday that its US board has unanimously approved an investment policy change that allows the company to purchase bitcoin using corporate cash, according to CNBC.
The company stated it may also invest proceeds from future debt and equity issuances in bitcoin and US dollar-denominated stablecoins.
As reported by CNBC, GameStop confirmed its February reporting that it planned to add bitcoin and other cryptocurrencies to its balance sheet.
As of February 1, GameStop held nearly US$4.8bn in cash and has not placed a limit on the amount of bitcoin it may buy.
According to the company's filing with the US Securities and Exchange Commission, GameStop acknowledged that “Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful.”
As reported by Reuters, GameStop’s shares rose more than 6 percent in extended trading Tuesday following the announcement.
GameStop’s bitcoin purchase aligns it with other US companies that have allocated part of their treasury to cryptocurrencies.
MarketWatch reports that MicroStrategy, now operating as Strategy, holds over 478,000 bitcoins valued at approximately US$45bn, making it the largest corporate holder of the asset.
As per The Wall Street Journal, Strategy’s bitcoin strategy led to a 690 percent increase in its share price, raising its market value to approximately US$97bn.
GameStop’s announcement also comes as bitcoin faces significant volatility.
According to Reuters, the cryptocurrency briefly exceeded US$100,000 following US President Donald Trump’s re-election but has since fallen about 18 percent to approximately US$88,000.
GameStop’s entry into digital assets is part of CEO Ryan Cohen’s ongoing effort to reshape the company.
As reported by CNBC, Cohen has focused on reducing costs and simplifying operations to return the business to profitability.
Alongside the bitcoin news, GameStop posted stronger fourth-quarter results.
According to Reuters, the company earned US$131.3m in net income, more than double the US$63.1m it earned during the same quarter last year.
GameStop’s bitcoin move follows earlier corporate examples, including Tesla’s brief foray into cryptocurrency in 2021 and Block’s bitcoin treasury strategy.
As per CNBC, Tesla initially invested US$1.5bn in bitcoin before partially reversing course.
These strategies remain controversial. According to MarketWatch, Strategy recently laid off 20 percent of its workforce while continuing to add bitcoin to its balance sheet, citing long-term confidence in the asset’s value despite short-term volatility.
