GameStop Corp. (NYSE: GME) declared that its board of trustees has unanimously sanctioned a modification to the organization’s investment strategy, permitting Bitcoin to be retained as a treasury reserve asset. This determination follows a succession of discussions between GameStop Chairman and CEO Ryan Cohen and notable individuals such as Michael Saylor within the Bitcoin sector.
On February 8, Cohen convened with Strategy Chairman and renowned Bitcoin supporter Michael Saylor, inciting speculation that GameStop could be integrating BTC into its financial portfolio. A few weeks later, Cohen replied to CoinDesk via a tweet indicating “Letter acknowledged.” following the receipt of a letter from Strive Asset Management CEO Matt Cole, which pressurized GameStop to embrace Bitcoin as a reserve asset.
In its declaration, GameStop highlighted that its investment policy now allows investments in “specific cryptocurrency assets, including Bitcoin and U.S. dollar-backed stablecoins.” The firm also recognized related risks, encompassing the potential influence of these investments on its financial outcomes and internal financial governance.
The policy modification was unveiled in conjunction with the company’s financial outcomes for the fourth quarter and complete fiscal year concluding on February 1, 2025.
For the fourth quarter, GameStop reported net sales of $1.283 billion, a decline from $1.794 billion in the equivalent period of the previous year. Selling, general, and administrative (SG&A) expenditures dropped to $282.5 million, compared to $359.2 million in the prior year’s fourth quarter. Net profit for the quarter was $131.3 million, rising from $63.1 million a year prior. Adjusted EBITDA for the quarter was $96.5 million, in contrast to $88.0 million in the previous year’s fourth quarter.
GameStop also revealed that it possessed $4.775 billion in cash, cash equivalents, and marketable securities at the close of the quarter. The firm finalized its exit from Italy and completed the closure of store operations in Germany during this timeframe.
For the entire fiscal year 2024, GameStop announced net sales of $3.823 billion, down from $5.273 billion in fiscal year 2023. SG&A expenses for the year amounted to $1.130 billion, as opposed to $1.324 billion in the previous year. Net income for the year hit $131.3 million, substantially exceeding the $6.7 million reported in fiscal year 2023. Adjusted EBITDA for the full year was $36.1 million, in comparison to $64.7 million in the preceding year.
The firm has not yet disclosed the quantity of Bitcoin it intends to acquire or when it plans to start purchasing BTC, and CEO Ryan Cohen has also not publicly addressed the incorporation of Bitcoin into GameStop’s financial portfolio as of the time of publishing.
