GameStop invests in Bitcoin as treasury reserve asset, stock rises, but anticipates more store closures

From Yahoo Finance: 2025-03-26 15:30:00

GameStop is making headlines again by investing in Bitcoin, with the board voting to add it as a treasury reserve asset. The company disclosed in a regulatory filing that there is no set limit to how much Bitcoin it may accumulate, along with cash, equity issuances, and future debt. GameStop’s stock rose 15% before settling at a 10% increase. Despite an increase in net income, GameStop anticipates more store closures due to ongoing struggles faced by brick-and-mortar retailers. This move follows other companies like MicroStrategy betting on cryptocurrency. President Trump’s recent embrace of crypto and the creation of a “Crypto Strategic Reserve” have also contributed to the renewed interest. However, Bitcoin’s price dropped by 1.6% on Wednesday, highlighting the volatility of the market. GameStop acknowledges the risks and rewards of its strategy to acquire and hold Bitcoin, emphasizing the need to continuously evaluate the situation.

Read more: GameStop goes full crypto bro as board votes unanimously for Bitcoin investment