GameStop Corp. (NYSE: GME) recently announced a significant shift in its investment strategy, with its board of directors unanimously endorsing a policy update that permits Bitcoin to be held as a treasury reserve asset. This move apparently comes after a series of discussions involving GameStop’s Chairman and CEO Ryan Cohen, who has been engaging with key figures in the Bitcoin sector, such as Bitcoin advocate and Strategy Chairman, Michael Saylor.
Back on February 8, Cohen had a meeting with Saylor that sparked rumors about GameStop potentially adding Bitcoin to its financial books. Not long after, Cohen tweeted a simple “Letter received” response to CoinDesk, following encouragement from Strive Asset Management CEO Matt Cole for GameStop to integrate Bitcoin as a reserve asset.
In unveiling this decision, GameStop explained that its updated investment policy allows for investments in “certain cryptocurrency assets,” which include Bitcoin and stablecoins backed by the U.S. dollar. The company, however, also highlighted potential risks, acknowledging the possible effects of these investments on both its financial results and its internal controls.
This policy update came out together with GameStop’s financial results for Q4 and the full fiscal year ending on February 1, 2025.
During the fourth quarter, GameStop reported $1.283 billion in net sales, marking a drop from the $1.794 billion achieved in the same timeframe the previous year. Their selling, general, and administrative expenses fell to $282.5 million from $359.2 million a year prior. Meanwhile, their net income for the quarter climbed to $131.3 million, up from the $63.1 million reported the year before. Adjusted EBITDA for the period increased slightly to $96.5 million, compared to $88.0 million recorded in the previous year’s fourth quarter.
By the end of the quarter, GameStop held a cash reserve amounting to $4.775 billion, including cash equivalents and marketable securities. During this time, the company completed its withdrawal from Italy and wrapped up winding down its German store operations.
Looking at the full fiscal year 2024, GameStop saw net sales of $3.823 billion, a decrease from $5.273 billion in fiscal year 2023. Their SG&A expenses summed up to $1.130 billion for the year, down from $1.324 billion the prior year. The net income shot up to $131.3 million, a significant increase from the $6.7 million reported for fiscal year 2023. For the entire year, their adjusted EBITDA was at $36.1 million, compared to $64.7 million the year before.
As of this article’s release, specifics about the amount of Bitcoin GameStop plans to buy, or when these acquisitions will start, remain undisclosed. Additionally, CEO Ryan Cohen has yet to provide public remarks regarding bringing Bitcoin onto GameStop’s balance sheet.
