Bitcoin Magazine

GameStop Approves Adding Bitcoin to Treasury Reserves

GameStop Corp. (NYSE: GME) revealed that its board of directors has unanimously endorsed a revision to the company’s investment strategy, allowing for Bitcoin to be included as a treasury reserve asset. This pivotal decision comes after a series of discussions between GameStop’s Chairman and CEO, Ryan Cohen, and notable Bitcoin advocates, including Michael Saylor.

On February 8, Cohen met with Chairman of Strategy and well-known Bitcoin proponent Michael Saylor, which stirred speculation regarding GameStop’s potential addition of BTC to its balance sheet. Shortly thereafter, Cohen acknowledged a letter received from Strive Asset Management CEO Matt Cole, who urged GameStop to consider Bitcoin as a reserve asset, stating in a tweet “Letter received.”

In its public statement, GameStop mentioned that its investment policy now allows for investments in “selected cryptocurrency assets, including Bitcoin and U.S. dollar-backed stablecoins.” Furthermore, the company addressed the risks associated with these investments, highlighting the potential effects on financial outcomes and internal financial management.

This policy revision was disclosed at the same time as the company’s financial reporting for the fourth quarter and complete fiscal year ending February 1, 2025.

For the fourth quarter, GameStop noted net sales of $1.283 billion, a decline from $1.794 billion during the same timeframe last year. The selling, general, and administrative (SG&A) expenses decreased to $282.5 million, down from $359.2 million in the previous year’s fourth quarter. Net income for this quarter increased to $131.3 million, up from $63.1 million previously. Adjusted EBITDA for the quarter stood at $96.5 million, compared to $88 million from the fourth quarter of the prior year.

GameStop also reported holding $4.775 billion in cash, cash equivalents, and marketable securities at the conclusion of the quarter. During this period, the company has finalized its exit from Italy and wrapped up its store operations in Germany.

In the overall fiscal year 2024, GameStop’s net sales reached $3.823 billion, down from $5.273 billion in fiscal year 2023. SG&A expenses for the year were recorded at $1.130 billion, as opposed to $1.324 billion in the previous year. The net income for the year soared to $131.3 million, a significant increase over the $6.7 million reported in the past fiscal year. The adjusted EBITDA for the year was $36.1 million, lower than the $64.7 million in the prior year.

The company has yet to disclose the specific amount of Bitcoin it intends to purchase or the timeline for these acquisitions. Additionally, CEO Ryan Cohen has not provided any public comments regarding the inclusion of Bitcoin in GameStop’s financial portfolio at the time this article was published.

This article GameStop Approves Adding Bitcoin to Treasury Reserves was originally featured on Bitcoin Magazine and is authored by Nik.

The post GameStop Expands Treasury Reserves with Bitcoin: A Bold Move for the Future appeared first on Crypto Breaking News.

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Filed under: News - @ March 25, 2025 9:20 pm