TLDR:
- GameStop has updated its investment policy to include Bitcoin as a “Treasury Reserve Asset”
- The decision was unanimously approved by GameStop’s board of directors on March 18, 2025
- GME stock rose more than 6% in after-hours trading following the announcement
- CEO Ryan Cohen previously hinted at this move by posting a photo with MicroStrategy’s Michael Saylor
- As of February 1, GameStop held $4.7 billion in cash and cash equivalents
The Strategic Pivot
GameStop, the video game retailer known for its meme stock status, has officially updated its investment policy to include Bitcoin as a permissible investment instrument. The company announced the change in its 2024 annual report filed with the Securities and Exchange Commission (SEC) on Tuesday, March 25, 2025.
The company clarified its position in a message on X (formerly Twitter), stating that it is now permitted to use Bitcoin “as a Treasury Reserve Asset.” This move marks a notable shift in how the company plans to manage its cash reserves.
The decision to add Bitcoin to its investment policy was unanimously approved by GameStop’s board of directors on March 18. The update allows the company to invest in “certain crypto-currencies, including Bitcoin.”
GameStop has not set a maximum limit on how much Bitcoin it may purchase. The company also stated in its SEC filing that it “may sell any Bitcoin we may acquire,” suggesting a flexible approach to its cryptocurrency strategy.
Market Response and Financial Position
The market responded positively to the news. While GameStop’s stock (GME) ended the regular trading day at $25.40, down 0.82%, it gained 6.3% in after-hours trading following the Bitcoin announcement.
This price movement reflects investor interest in the company’s new direction. GameStop trades on the New York Stock Exchange under the ticker symbol GME.
The company’s financial position appears strong for such a move. As of February 1, 2025, GameStop held $4.7 billion in cash and cash equivalents, compared to $921 million a year prior, according to the SEC filing.
For its 2024 fiscal year, GameStop reported profits of $131 million on $3.8 billion in sales. Most of these sales came from video game hardware and accessories.
These results mark an improvement from the previous year when the company reported a profit of $6.7 million on $5.3 billion in sales. However, the fourth quarter showed a decline with $1.28 billion in net sales, 28% lower than the same period last year.
Leadership and Strategy Evolution
GameStop’s CEO Ryan Cohen appears to have played a key role in this strategic shift. Cohen, who founded the online pet supplies store Chewy, has been building up cash reserves at GameStop since taking the helm about a year and a half ago.
Cohen hinted at the company’s Bitcoin plans last month. He posted a photo on X showing himself alongside MicroStrategy’s Executive Chairman Michael Saylor, whose company has become known for its large Bitcoin holdings.
MicroStrategy currently holds more than 447,000 Bitcoin tokens according to a February filing. The strategy has worked well for Saylor’s company, with its stock up over 84% in the past year amid rising Bitcoin prices.
Cohen replaced former CEO Matt Furlong, who had attempted to launch NFT collectibles before being terminated. The new Bitcoin strategy represents yet another pivot for GameStop, which has seen multiple strategic changes in recent years.
Wall Street analysts have mixed views on the move. Wedbush analyst Michael Pachter expressed skepticism prior to the official announcement, noting that GameStop’s strategy “has changed about six times in three years.”
Pachter questioned the comparison to MicroStrategy, pointing out that if GameStop were to convert all its cash to Bitcoin and trade at similar multiples to MicroStrategy, the stock might actually decline in value.
For the full year, GameStop reported an adjusted EBITDA of $36.1 million, down from $64.7 million the previous year. These figures provide context for understanding the company’s overall financial health as it embarks on this new investment direction.
The company’s decision comes amid growing corporate interest in Bitcoin as a treasury reserve asset. Some companies view cryptocurrencies as a potential hedge against inflation and currency devaluation.
GameStop has not specified a timeline or target amount for its Bitcoin purchases. The open-ended nature of the investment policy gives the company flexibility to adjust its strategy based on market conditions.
The addition of Bitcoin to GameStop’s investment policy continues a trend of mainstream companies exploring cryptocurrency investments. This represents a major shift from the company’s traditional focus on physical retail.
GameStop’s move aligns with its efforts to transform its business model in response to the changing landscape of video game retail, where digital downloads have increasingly replaced physical game sales.
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