GameStop to Acquire Bitcoin as Part of Its Reserve Strategy

Highlights:

• GameStop plans to invest in Bitcoin and stablecoins as part of its strategy.
• The company’s cash reserves increased to $4.77 billion, showing strong growth.
• GameStop’s move follows a trend of companies using Bitcoin as a reserve asset.

A CNBC report on March 25 stated that GameStop Corporation (GME), plans to use some of its cash or future borrowed money to invest in Bitcoin (BTC) and stablecoins tied to the U.S. dollar. GameStop didn’t reveal how much or when it will invest but confirmed that Bitcoin is now part of its financial strategy. This decision follows a trend of publicly traded companies adding Bitcoin to their balance sheets as a long-term investment, with nearly 665,000 BTC currently held by these firms.

GameStop revealed in its fourth-quarter earnings report that its digital asset strategy now includes exposure to stablecoins. As of February 1, GameStop had over $4.77 billion in cash reserves, up from $921.7 million the previous year. GameStop reported $1.283 billion in net sales for the fourth quarter and $3.823 billion for the 2024 fiscal year.

The financial statement reads:

“[T]he Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and US dollar-denominated stable coins.”

GameStop’s shares rose more than 7% after the announcement. At the same time, Bitcoin briefly surpassed $88,021 following the news.

GameStop’s Path to Bitcoin Adoption

In February, rumors about GameStop’s interest in Bitcoin spread, causing GME stock to rise. In early February, GameStop Chairman and CEO Ryan Cohen shared a photo with Strategy’s Michael Saylor at Donald Trump’s Mar-a-Lago estate, which sparked speculation about a Bitcoin investment.

This following Cohen’s recent transfer of $GME shares from his LLC to his personal name on January 27

Hinting at a possible bitcoin strategy?

Hinting at another share offering?

Wasn’t expecting this duo on my 2025 bingo card #GameStop

— Wolf of My Street (@Ryan__Rigg) February 8, 2025

Soon after Cohen’s public appearance with Saylor, Strive Asset Management CEO Matt Cole wrote an open letter urging GameStop to invest part of its cash reserves in Bitcoin. He suggested that GameStop could stand out in the gaming and retail industries by embracing a Bitcoin-focused treasury strategy. He called it “a great opportunity to reshape its financial future.”

Ryan Cohen responded to Strive’s proposal on X (formerly Twitter), stating, “Letter received,” but GameStop made no official statement until announcing its Bitcoin strategy. 

Letter received.

— Ryan Cohen (@ryancohen) February 25, 2025

Several companies in the U.S. have adopted BTC as a treasury reserve asset. However, the practice was pioneered by Strategy. The company has been purchasing Bitcoin since 2020 and currently holds 506,137 BTC, valued at $44.2 billion.

Crypto Leaders Weigh In on GameStop’s Bitcoin Strategy

Crypto figures, including Bitgo CEO Mike Belshe, reacted to GameStop’s Bitcoin strategy. He suggested investing 90% of its $4.77 billion in Bitcoin. Belshe recommended locking the Bitcoin for 1, 2, 4, and 8 years, with 50% of profits paid out to shareholders.

Jim Cramer, host of CNBC’s Mad Money, reacted by stating, “GameStop is finally doing my Bitcoin ploy!” Back in February 2021, he had suggested that the company generate funds to invest in Bitcoin. He also suggested converting its 5,000 stores into crypto hubs. Cramer saw this as a way to justify the stock’s value and boost its future.

Gamestop is finally doing my bitcoin ploy!!

— Jim Cramer (@jimcramer) March 25, 2025