GameStop Ready to Add Bitcoin as Company Reserve Fund

Bittime - Gamestop Corp. (NYSE: GME) has taken a big step into the cryptocurrency sector by announcing on March 25 that its board of directors has approved an update to its investment policy to add bitcoin as a financial reserve asset. 

Read more about Gamestop's steps to add Bitcoin as a complete company reserve fund discussed here!

GameStop Adds Bitcoin as Company Reserve Fund

According to Gamestop, a portion of its current cash reserves, as well as funds from possible future debt or equity issuance, could be allocated to purchasing Bitcoin. 

This decision follows years of advocacy from investors and crypto enthusiasts who pushed the company to integrate digital assets into its financial management. 

The updated investment policy now allows investments in "certain cryptocurrency assets, including bitcoin and stablecoins denominated in US dollars."

GameStop's move to add Bitcoin is in line with the trend of increasing BTC adoption among institutions and marks a major change in the company's financial strategy.

Also read: XRP Price Prediction March 26, 2025: Today's Trend Analysis

GameStop's Financial Performance and Cash Reserves

Along with the announcement of its Bitcoin strategy, Gamestop released financial results for its fiscal fourth quarter and full year ending February 1, 2025. 

The company reported a decline in quarterly sales, falling from $1.794 billion a year earlier to $1.283 billion. However, net income jumped to $131.3 million, a significant increase from $63.1 million, driven largely by reduced operating expenses.

On an annual basis, net sales fell from $5.273 billion to $3.823 billion, but annual net income increased sharply from $6.7 million to $131.3 million. 

Additionally, GameStop completed its withdrawal from the Italian market and completely closed its operations in Germany. At the end of the fiscal year, the company had cash and cash equivalents of $4.757 billion, providing enough liquidity to support its Bitcoin reserve strategy.

Industry Reaction and Expert Opinion

The cryptocurrency industry responded enthusiastically to Gamestop's latest move. BitGo CEO Mike Belshe suggested that Gamestop allocate 90% of its cash reserves into Bitcoin, locking some of those funds in time-bound transactions of between one and eight years. 

He also proposed that the company distribute 50% of the profits generated from Bitcoin appreciation as dividends.

CNBC's "Mad Money" host Jim Cramer also commented on the strategy, noting, "Gamestop finally nailed my Bitcoin strategy!!" 

Cramer previously advised Gamestop in 2021 to raise funds to buy Bitcoin and convert its 5,000 retail locations into cryptocurrency hubs, arguing that such a strategy could increase the company's valuation and long-term sustainability.

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Increasing Adoption of Bitcoin as a Reserve Asset

Gamestop's Bitcoin strategy reflects broader trends in the private and public sectors. Institutional and government interest in Bitcoin as a reserve asset continues to increase. 

Recently, US President Donald Trump signed an executive order to create a Bitcoin strategic reserve and cryptocurrency inventory, signaling federal recognition of digital assets.

Meanwhile, several state governments in the US are exploring similar initiatives. Companies like MicroStrategy (NASDAQ: MSTR) continue to expand their Bitcoin holdings, strengthening the asset's legitimacy as a long-term store of value. 

Gamestop's shift to Bitcoin strategy could further accelerate this trend, placing the company at the forefront of the growing digital economy.

Conclusion

Gamestop's decision to integrate Bitcoin into its financial reserves could be the start of major changes for the company. 

With $4.8 billion in cash and growing interest in digital assets, this move will likely strengthen Gamestop's role in the crypto ecosystem. 

As Bitcoin adoption among companies increases, Gamestop's strategy could set a precedent for other public companies considering similar investments.

FAQ

1. Why did Gamestop decide to add Bitcoin to its financial reserves?

Gamestop wants to follow the growing trend of Bitcoin adoption among institutions and sees it as a valuable asset for its financial reserves.

2. How much money does Gamestop have in cash and cash equivalents?

Gamestop has approximately $4.757 billion in cash and cash equivalents, which gives them flexibility in their Bitcoin investment strategy.

3. What is the financial impact of this strategy for Gamestop?

Although this strategy carries risks, investing in Bitcoin could provide significant profits if Bitcoin prices continue to rise, potentially strengthening Gamestop's financial position in the future.

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Reference

Kevin Helms, Gamestop Unleashes Bitcoin Strategy—Can $4.8B Make GME a Crypto Titan?, accessed March 25, 2025

Author: SD