GameStop Board Unanimously Approves Bitcoin As Treasury Reserve Asset

Ronaldo Marquez

2 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

In a significant move for the video game retail giant, GameStop announced on Tuesday that its board has unanimously approved a plan to use corporate cash reserves to invest in the crypto market’s largest cryptocurrency, Bitcoin (BTC).

This decision mirrors a strategy made by the now Bitcoin proxy company Strategy (previously Microstrategy) by MicroStrategy, which has made headlines for its substantial Bitcoin acquisitions led by its co-founder Michael Saylor.

With $4.8 Billion In Cash, GameStop Eyes Bitcoin Expansion

Following the announcement, GameStop’s stock surged more than 6% in extended trading, reflecting investor enthusiasm for the company’s new direction.

This news aligns with earlier reports from CNBC in February, which hinted at GameStop’s intentions to incorporate Bitcoin and other cryptocurrencies into its financial strategy.

As of February 1, GameStop reported holding nearly $4.8 billion in cash, and the company indicated that a portion of this cash, along with potential future debt and equity issuances, may be allocated to Bitcoin and US dollar-denominated stablecoins.

Notably, GameStop has not imposed a ceiling on the amount of Bitcoin it may purchase, suggesting a commitment to exploring the cryptocurrency market without restrictions.

Ryan Cohen’s Vision

This foray into cryptocurrencies is part of a broader strategy by GameStop’s CEO, Ryan Cohen, to revitalize the company’s struggling brick-and-mortar operations.

Under Cohen’s leadership, GameStop has focused on cost-cutting measures and operational streamlining to ensure long-term profitability. By adding Bitcoin to its balance sheet, GameStop aims to modernize its financial approach and appeal to a new generation of investors.

However, the company has also acknowledged the risks associated with this venture. In a filing with the Securities and Exchange Commission (SEC), GameStop noted that Bitcoin is a highly volatile asset, subject to significant price fluctuations.

The firm cautioned that its Bitcoin strategy has yet to be tested and may ultimately prove unsuccessful, highlighting the inherent risks of investing in cryptocurrency. In conjunction with the cryptocurrency announcement, GameStop also reported positive financial results for its fourth quarter.

The company posted a net income of $131.3 million, more than double the $63.1 million earned in the same period last year. This financial performance, coupled with the new Bitcoin strategy, has generated optimism among investors about GameStop’s future.

At the time of writing, BTC is seeing a notable 7% price recovery on the weekly timeframe, leading to the retaking of the key $88,000 mark. This comes after weeks of heavy selling pressure that saw the leading crypto retreat to the $76,000 level for the first time since November 2024.

Featured image from DALL-E, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.