GameStop plans to invest in bitcoin, close – Business News
GameStop stated Tuesday that its board has unanimously accepted the addition of bitcoin as a treasury reserve asset.
GameStop shares jumped 7% to $27.23 in after-hours trading.
The resolution echoes that of Strategy, the biggest company holder of bitcoin, which in February dropped the phrase “Micro” from its title and unveiled a new brand, to emphasize its dedication to the cryptocurrency space.
Strategy stated that the rebranding was “a natural evolution” because it seeks to combine bitcoin — the world’s greatest and best-known cryptocurrency — into the guts of its business operations.
GameStop posted a rise in fourth-quarter revenue, helped by its efforts to scale back prices, because it continues to grapple with a gradual turnaround in its mainstay of retailing videogame {hardware} and merchandise. Getty Images
The transfer by GameStop comes shortly after President Trump’s government order, signed earlier this month, to set up a strategic reserve of cryptocurrencies utilizing tokens already owned by the federal government.
GameStop stated it’s going to use a portion of its money or future debt or equity issuances to be invested in bitcoin, however didn’t specify the utmost quantity of bitcoin it would buy, in accordance to its quarterly submitting.
It additionally posted a rise in fourth-quarter revenue, helped by its efforts to scale back prices, because it continues to grapple with a gradual turnaround in its mainstay of retailing videogame {hardware} and merchandise.
GameStop’s fourth-quarter web income more than doubled to $131.3 million, in contrast to the identical period final yr, when it posted $63.1 million.
GameStop stated it’s going to use a portion of its money or future debt or equity issuances to be invested in bitcoin, however didn’t specify the utmost quantity of bitcoin it would buy. REUTERS
The company, as soon as on the heart of the “meme stock” trading frenzy, has been fighting its main business due to an exodus in direction of digital downloads, sport streaming and e-commerce buying.
However, it has been aggressively slicing prices. It closed 590 shops in the United States in fiscal 2024 and anticipates closing a “significant number” of further shops in fiscal 2025.
It reported fourth-quarter income of $1.28 billion, in contrast to $1.79 billion a yr earlier.
