In a move that could reshape its financial strategy, GameStop has officially added Bitcoin to its list of permissible treasury reserve assets. The announcement, revealed in the company’s 2024 annual SEC filing on Tuesday, marks a significant pivot for the video game retailer, once known more for meme-fueled stock rallies than balance sheet innovation.
The updated investment policy gives GameStop the green light to buy, hold, and sell Bitcoin as part of its corporate treasury strategy, with no maximum accumulation cap set.
GameStop confirmed the change on X, stating it is now permitted to use Bitcoin as a Treasury Reserve Asset. The decision was unanimously approved by the company’s board on March 18, signaling serious alignment at the leadership level.
“We have not set a maximum amount of Bitcoin we may accumulate and may sell any Bitcoin we may acquire,”
GameStop stated in its filing, leaving the door open for future expansion into crypto holdings.
While the market’s immediate reaction was muted, GME shares rose 6.3% in after-hours trading, hinting at investor optimism over the company’s strategic shift.
From Meme Stock to Bitcoin Holder
The move adds a new dimension to GameStop’s evolution. Once at the center of the Reddit-driven stock frenzy, the company is now taking cues from corporate heavyweights like Tesla and MicroStrategy, who have adopted Bitcoin as a hedge and potential growth asset.
Notably, GameStop CEO Ryan Cohen, known for his sharp financial plays recently posed for a photo with MicroStrategy’s Michael Saylor, a vocal Bitcoin advocate. The post shared on X, may have foreshadowed GameStop’s Bitcoin plans.
GameStop’s decision comes amid a major cash buildup. As of February 1, the company reported $4.7 billion in cash and cash equivalents a staggering jump from $921 million the year before. With Bitcoin now on the table, GameStop gains a new avenue for diversifying its growing cash reserves.
For the 2024 fiscal year, GameStop posted $131 million in profits on $3.8 billion in sales, largely from video game hardware and accessories. While revenues declined, the company’s focus on financial resilience appears to be driving this latest move into digital assets.
GameStop’s shift mirrors a broader trend as corporations seek alternative strategies to hedge against inflation and fiat currency risk. Bitcoin, once viewed as speculative, is increasingly being treated as a legitimate treasury asset.
With no cap on potential Bitcoin holdings, GameStop now has the flexibility to scale its crypto exposure based on market conditions a notable departure from its previous attempts at NFT collectibles under former CEO Matt Furlong.
What’s Next?
As the company continues reinventing itself, adding Bitcoin to its treasury may help GameStop tap into new investor bases, align with emerging financial trends, and signal confidence in the long-term potential of digital assets.
Whether this move revives GameStop’s relevance beyond its meme stock fame remains to be seen. But one thing is clear, Bitcoin is no longer just a retail investor play. It’s now part of GameStop’s corporate strategy.
