GameStop has announced the addition of Bitcoin to its treasury reserves following board approval. This decision coincides with improved quarterly profits.
Quarterly Profits and Investment Policy Update
On March 25, the Texas-based company announced that its board has unanimously approved an update to its investment policy to include Bitcoin as a treasury reserve asset. According to its latest fiscal filing, GameStop will use a portion of its cash reserves or proceeds from future debt or equity issuances to invest in the leading cryptocurrency. The document did not specify the maximum amount to be allocated. This decision followed a social media post by CEO Ryan Cohen, who shared an image with well-known Bitcoin advocate Michael Saylor.
Shares Rise After Announcement
Following this announcement, GameStop shares rose 8.27% in after-hours trading to $27.50. Over the past 12 months, the stock has shown a 63.87% increase. The company is taking a similar approach to software company Strategy (formerly MicroStrategy), which has invested billions in Bitcoin to become the largest corporate holder of the cryptocurrency.
Other Companies Investing in Bitcoin
Other companies have also incorporated Bitcoin into their treasury strategies. Rumble plans to invest up to $20 million, and Japanese firm Metaplanet is now the largest corporate Bitcoin holder in Asia. Furthermore, Bitcoin mining vendor Riot Platforms and medical technology firm Semler Scientific have also joined this trend.
GameStop's decision to add Bitcoin to its reserves highlights corporate confidence in the cryptocurrency as a means of value preservation. Similar steps by major companies continue to support the popularity and adoption of digital assets in corporate finance.
