GameStop's latest move is pure crypto chaos. The gaming retailer's board unanimously voted to add Bitcoin to its treasury reserves, sending its stock soaring 15% in pre-market trading to $29.6. The company, sitting on $4.6 billion in cash, joins Tesla and MicroStrategy in the Bitcoin club. Despite struggling with digital game downloads, GameStop's net income doubled to $131.3 million. The real story behind this bold pivot might surprise you.
Every now and then, a company makes a move that turns heads – and GameStop just did exactly that. The video game retailer's board unanimously voted to add Bitcoin to its treasury reserve assets, sending its stock soaring 15% in pre-market trading. Not bad for a company that's been struggling with the whole "people downloading games instead of buying discs" thing.
GameStop shocked markets by adding Bitcoin to its reserves, proving even struggling retailers can still make waves in the financial world.
The decision comes as GameStop sits on a hefty $4.6 billion in cash, and honestly, they needed to do something with it. After discontinuing their NFT marketplace earlier in 2024, they needed a new digital strategy. The stock hit $29.6 in pre-market trading before reality kicked in and it dropped back down – classic GameStop roller coaster stuff. Remember, this is the same company that turned into a meme stock sensation, so volatility is basically its middle name. The SEC filing confirmed there was no investment ceiling set for their Bitcoin accumulation strategy.
CEO Ryan Cohen apparently had a chat with Bitcoin evangelist Michael Saylor, and wouldn't you know it, GameStop's jumping on the crypto train. With market dominance at 74%, Bitcoin remains the undisputed leader in the cryptocurrency space. They're joining the likes of MicroStrategy (now just "Strategy" because, sure, why not) and Tesla in the "Bitcoin as a treasury asset" club. Bitcoin's currently hanging around $87,000 to $88,000, though it's about as stable as a jenga tower in an earthquake.
The timing's interesting, considering GameStop's planning to close a bunch of stores in 2025. But hey, their latest numbers aren't all bad – net income jumped to $131.3 million, up from $63.1 million, even though sales dropped by 28.5%. Cost-cutting works wonders, apparently.
The move aligns nicely with President Trump's pro-crypto agenda and the whole "Crypto Strategic Reserve" initiative. It's funny how politics and gaming retail can collide like this. GameStop's basically saying, "Sure, our traditional business is struggling, but watch us pivot into the crypto space like it's nobody's business."
Will this bold Bitcoin bet pay off? Who knows. But one thing's certain – GameStop's still got a knack for making headlines, even if it's not quite the same company that used to dominate strip malls across America.
