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 buying and selling.
The choice echoes that of Technique, the biggest company holder of bitcoin, which in February dropped the phrase “Micro” from its title and unveiled a brand new brand, to emphasise its dedication to the cryptocurrency area.
Technique stated that the rebranding was “a natural evolution” because it seeks to combine bitcoin — the world’s largest and best-known cryptocurrency — into the guts of its enterprise operations.
The transfer by GameStop comes shortly after President Trump’s govt order, signed earlier this month, to determine a strategic reserve of cryptocurrencies utilizing tokens already owned by the federal government.
GameStop stated it should use a portion of its money or future debt or fairness issuances to be invested in bitcoin, however didn’t specify the utmost quantity of bitcoin it’d purchase, in response to its quarterly submitting.
It additionally posted an increase in fourth-quarter revenue, helped by its efforts to cut 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 earnings greater than doubled to $131.3 million, in comparison with the identical interval final yr, when it posted $63.1 million.
The corporate, as soon as on the middle of the “meme stock” buying and selling frenzy, has been fighting its main enterprise as a result of an exodus in the direction of digital downloads, recreation streaming and e-commerce procuring.
Nonetheless, it has been aggressively slicing prices. It closed 590 shops in america in fiscal 2024 and anticipates closing a “significant number” of extra shops in fiscal 2025.
It reported fourth-quarter income of $1.28 billion, in comparison with $1.79 billion a yr earlier.
