GameStop Board Approves Addition of Bitcoin Reserve to Corporate Treasury

Key Takeaways:

• The GameStop board has unanimously approved adding a Bitcoin reserve to its treasury.
• The video game company has not set a fixed accumulation amount and may sell BTC based on market conditions.
• GameStop’s decision is reportedly influenced by President Trump’s executive order on Bitcoin reserves and Strategy’s BTC accumulation strategy.

GameStop’s board unanimously approved an update to its investment policy, which now allows the addition of a Bitcoin reserve to its treasury. This announcement coincided with the release of its fourth-quarter and fiscal year 2024 financial results. 

The retail gaming company reported a sharp increase in net income, rising from $6.7 million in fiscal year 2023 to $131.3 million in 2024, highlighting a strong financial performance.

GameStop's Flexible Bitcoin Investment Plan Unveiled

GameStop made its Bitcoin reserve implementation plan public through a press release and also filed a Form 10-K with the U.S. Securities and Exchange Commission (SEC) on the same day. 

An announcement regarding Bitcoin pic.twitter.com/gG8JRarIok

— GameStop (@gamestop) March 25, 2025

As outlined in the filing, GameStop plans to allocate a portion of its cash or future debt and equity issuances toward Bitcoin. However, the company has not set a fixed amount for accumulation, leaving room for flexibility in its Bitcoin reserve strategy. 

Additionally, it acknowledged the possibility of selling any Bitcoin acquired, depending on market conditions.

While the idea of a Bitcoin reserve presents an intriguing investment opportunity, GameStop has emphasized that its Bitcoin strategy remains untested and could face challenges. 

The company aims to assess the risks, such as volatility, and potential rewards tied to this decision. 

For context, Bitcoin, the world’s largest cryptocurrency, has experienced price swings since President Trump secured reelection. 

After soaring to an all-time high of over $100,000, BTC price has since pulled back by approximately 18%, currently trading around $88,000.

GameStop's decision to integrate Bitcoin into its corporate reserves mirrors a strategy popularized by MicroStrategy, which has been rebranded as Strategy. 

The firm, led by Michael Saylor, saw its stock price surge after investing billions in Bitcoin and becoming the largest corporate holder of the asset. 

Just a day before GameStop’s announcement, Strategy disclosed another purchase of 6,911 BTC, bringing its total holdings to 506,137 BTC. 

$MSTR has acquired 6,911 BTC for ~$584.1 million at ~$84,529 per bitcoin and has achieved BTC Yield of 7.7% YTD 2025. As of 3/23/2025, @Strategy holds 506,137 BTC acquired for ~$33.7 billion at ~$66,608 per bitcoin. $STRK https://t.co/3vSGnTUVcE

— Michael Saylor⚡️ (@saylor) March 24, 2025

If GameStop follows a similar trajectory, its stock (GME) could see a substantial increase in value, particularly with ongoing predictions of a future Bitcoin bull run.

Beyond corporate strategy, GameStop’s decision comes amidst U.S. government policies on crypto. 

Earlier this month, President Trump signed an executive order to establish a strategic Bitcoin reserve, reinforcing the country’s stockpile of cryptocurrencies. 

Additionally, in January, Ohio proposed House Bill 18, which mandates allocating 10% of state funds to Bitcoin and other cryptocurrencies. 

On the international front, Czech National Bank Governor Aleš Michl has also suggested investing billions of euros from public funds into Bitcoin. 

GameStop appears to be positioning itself in line with this growing institutional embrace of BTC, seizing an opportunity backed by government action.

Could Bitcoin Help GameStop Revitalize Its Business?

GameStop’s entrance into Bitcoin is part of CEO Ryan Cohen’s broader strategy to revive the struggling retail chain. 

Despite an increase in net income, rising from $6.7 million in fiscal year 2023 to $131.3 million in fiscal year 2024, GameStop continues to see declining sales. 

The company’s financial report revealed net sales of $3.823 billion in fiscal year 2024, a sharp drop from $5.273 billion in the previous year.

GameStop has also made structural changes, including exiting the Italian market and winding down store operations in Germany. These adjustments reflect the company’s response to shifting consumer behavior, particularly the growing dominance of digital game distribution.

According to Canvas Business Model data, 73% of GameStop’s sales are still reliant on physical stores, hence the increasing pressure to adapt. 

Digital platforms like Steam, PlayStation Store, and Xbox Live allow gamers to bypass brick-and-mortar stores, offering more convenience and often lower prices. This trend has made GameStop’s traditional retail model increasingly outdated.

If Bitcoin’s long-term value continues to rise, GameStop’s new financial strategy could provide a much-needed boost, helping the company stay competitive in a rapidly evolving gaming market.