Gamestop has unveiled a Bitcoin reserve strategy in line with rising institutional BTC usage, while sitting on $4.8 billion in cash, fueling its most disruptive pivot yet.
$4.8 billion in the pipeline: Gamestop loads its treasury with Bitcoin – Is the game just getting started?
Gamestop Corp. (NYSE: GME) announced on March 25 that its board of directors “unanimously approved an investment policy update to add Bitcoin as a treasury reserve asset.”
The company stated that a portion of its current cash balance, as well as proceeds from potential future debt or equity offerings, could be used to acquire BTC. This move represents a significant departure from the retailer’s traditional treasury management strategy, following long-standing calls from investors and digital currency advocates for the company to integrate cryptocurrencies into its financial structure. Gamestop’s new investment policy states:
The company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins.
Financial results for the fourth quarter and full year ended February 1, 2025, were released alongside. Quarterly net sales fell to $1.283 billion from $1.794 billion in the previous year. However, net income improved to $131.3 million, compared to $63.1 million, primarily due to reductions in operating expenses. On an annual basis, net sales fell to $3.823 billion from $5.273 billion, while net income increased to $131.3 million from $6.7 million. The company also completed its withdrawal from the Italian market and completed the closure of its operations in Germany. In addition, Gamestop reported year-end cash and cash equivalents of $4.757 billion.
Several figures in the crypto industry responded to Gamestop’s new Bitcoin strategy. Commenting on the $4.757 billion in liquidity, Bitgo CEO Mike Belshe suggested on the social media platform X:
Gametop should invest 90% of it in Bitcoin. They should invest in time-locked transactions of 1 year, 2 years, 4 years, and 8 years and announce that they will distribute 50% of the above-water profits as dividends.
Jim Cramer, host of CNBC’s Mad Money, also remarked, “GameStop is finally doing my Bitcoin trick!!” In February 2021, Cramer suggested that GamesStop should raise funds to buy BTC and convert its 5,000 stores into crypto hubs as a way to justify the stock’s value and promote its future.
Interest in Bitcoin as a reserve asset is growing in both the public and private sectors. U.S. President Donald Trump recently issued an executive order to create a strategic Bitcoin reserve and cryptocurrency asset. Several state governments are pursuing or considering similar measures. Meanwhile, companies like Strategy (Nasdaq: MSTR) continue to expand their crypto holdings, reflecting broader institutional adoption.
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