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4w ago

GameStop Announces Unrestricted Bitcoin Investment Plan Following Board Approval

The retailer's decision to allocate corporate cash to Bitcoin comes after strong Q4 earnings and months of speculation.

People walk by a GameStop in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly/File Photo
(John Smith/VIEWpress)
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Overview

  • GameStop's board has unanimously approved a plan to invest in Bitcoin with no set limit on the amount to be purchased.
  • The decision aligns with a proposal from Strive Asset Management to position GameStop as a leader in Bitcoin treasury management within the gaming sector.
  • Following the announcement, GameStop's stock price rose over 6% in extended trading, highlighting investor enthusiasm for the move.
  • The company reported a significant rise in profitability, with Q4 net income doubling year-over-year to $131.3 million.
  • Under CEO Ryan Cohen, GameStop has focused on cost-cutting, operational efficiency, and leveraging its $4.6 billion cash reserves for strategic growth opportunities.