GameStop announced that its board has unanimously approved the addition of bitcoin as a treasury reserve asset. This decision aligns with a similar move by Strategy, the largest corporate holder of bitcoin, which recently dropped "Micro" from its name and unveiled a new logo to emphasize its commitment to the cryptocurrency.
Strategy described the rebranding as "a natural evolution" as it aims to integrate bitcoin— the most prominent cryptocurrency— into its core business operations.
GameStop's initiative follows a recent executive order signed by U.S. President Donald Trump to create a strategic reserve of cryptocurrencies using tokens already owned by the government. The company plans to invest a portion of its cash or future debt and equity issuances in bitcoin, although it did not disclose the maximum amount it intends to purchase.
The company also reported a rise in fourth-quarter profit due to its cost-cutting efforts while still facing challenges in its primary retail operations of video game hardware and merchandise. GameStop's fourth-quarter net income more than doubled to $131.3 million from $63.1 million in the same period last year.
Once at the center of the "meme stock" trading frenzy, GameStop has been struggling as consumers shift towards digital downloads, game streaming, and e-commerce. To address these challenges, it has aggressively cut costs, closing 590 stores in the United States in fiscal 2024 and planning to close a significant number of additional stores in fiscal 2025.
The company reported fourth-quarter revenue of $1.28 billion, down from $1.79 billion a year earlier.