GameStop will invest in Bitcoin following the example of Strategy
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GameStop has announced that its board of directors has unanimously approved a plan to invest the company’s capital in Bitcoin. The move follows the path set by Strategy (formerly Microstrategy), a company that in recent years has accumulated billions of dollars in cryptocurrency. After the announcement, GameStop’s stock rose by over 6% in after-hours trading. The company stated that a portion of its liquid capital, or any future debt instruments and shares, could be allocated to the purchase of Bitcoin and stablecoins denominated in US dollars. As of February 1st, GameStop had approximately 4.8 billion dollars in cash, without having set a maximum limit for Bitcoin acquisitions. A strategic step for the rebirth of GameStop The initiative represents the latest strategy implemented by CEO Ryan Cohen, who has long been committed to reviving GameStop, a historic company in the sale of physical video games, but which has had to face a decline in sales with the market’s transition towards digital. Cohen has so far focused on a radical reduction of costs and on the optimization of operations, with the goal of bringing the company back to profitability. The acquisition of Bitcoin might not only diversify the company’s financial activities, but also represent a bet on the future establishment of cryptocurrencies as a long-term asset. The precedent of MicroStrategy and the risk of volatility MicroStrategy – now renamed Strategy – was the first major company to adopt this strategy, purchasing billions of dollars in Bitcoin and becoming the largest corporate holder of the cryptocurrency. Its choice led to a rapid growth in the value of its shares, albeit with a high level of volatility. GameStop also emphasized in its statement that entering the cryptocurrency market involves risks. Bitcoin is known for its volatility, having recorded significant price swings over time. The…
Filed under: News - @ March 26, 2025 8:25 am