On March 25, 2025, GameStop (GME) announced an update to its corporate investment policy to include Bitcoin, resulting in a surge in its stock price during after-hours trading. The decision was unanimously approved by the board, following previous reports indicating that the video game retailer was exploring investments in cryptocurrencies.
- GameStop includes Bitcoin in investment policy.
- Shares rose over 6% in after-hours trading.
- CEO Ryan Cohen hints at crypto plans.
- Revenue fell 28% year-over-year.
- Adjusted net income increased to $136.4 million.
The incorporation of Bitcoin into GameStop’s investment strategy comes amid growing interest in cryptocurrencies among corporations. This move follows speculation fueled by CEO Ryan Cohen’s recent social media activity, where he shared a photo with Michael Saylor, co-founder of MicroStrategy, a leading corporate holder of Bitcoin. The current price of Bitcoin is approximately $88,000.
In addition to the investment policy change, GameStop reported its fiscal fourth-quarter results, revealing a 28% decrease in revenue year-over-year, totaling $1.28 billion. However, the company achieved an adjusted net income of $136.4 million, or 30 cents per share, compared to $67.7 million, or 22 cents per share, in the previous year. This earnings growth was attributed to cost-cutting measures implemented by the company.
- GameStop’s stock rose over 6% in after-hours trading following the announcement.
- The company’s revenue fell by 28% year-over-year.
- Adjusted net income increased to $136.4 million from $67.7 million a year earlier.
GameStop’s strategic shift towards Bitcoin reflects a broader trend of traditional retailers exploring digital currencies. As the company navigates a challenging retail environment, this investment policy could position GameStop to capitalize on the growing cryptocurrency market while seeking to enhance shareholder value.
In summary, GameStop’s decision to integrate Bitcoin into its investment policy marks a significant step for the retailer as it seeks to adapt to changing market dynamics. The company’s recent financial results highlight both challenges and opportunities as it moves forward.
