GameStop Bitcoin Bet: From Meme Stock to Digital Treasury

The videogame retailer GameStop has officially added the digital gold to its list of treasury reserve assets. The company disclosed the move in its 2024 annual report filed with the SEC on March 26.

According to the report, GameStop can now invest in “certain cryptocurrencies, including Bitcoin,” as part of its broader investment strategy.

The policy update was approved by the board of directors on March 18. Following the news, GameStop’s stock rose over 13% in pre-market trading. The announcement came after weeks of speculation sparked by GameStop CEO Ryan Cohen’s social media hints and a proposal from Strive Asset Management.

From Cash Pile to Crypto

As of February 1, 2025, GameStop held $4.7 billion in cash and cash equivalents. That’s a substantial increase from $921 million the year before. Now, part of that capital could be deployed into Bitcoin, though the company hasn’t specified how much it plans to buy.

GameStop stated there is “no maximum amount” of Bitcoin it may hold and that it can sell its holdings at any time. This open-ended stance resembles the approach taken by Strategy (formerly MicroStrategy), a company known for transforming its balance sheet into a Bitcoin-heavy treasury.

The Saylor Signal

The Bitcoin rumors picked up momentum after Ryan Cohen posted a photo in February with Michael Saylor, the Executive Chairman of Strategy and a major Bitcoin advocate. Saylor’s company holds over 447,000 BTC as of February 2025.

That photo didn’t go unnoticed. It was followed by public speculation and a formal proposal from Strive Asset Management urging GameStop to become the leading Bitcoin treasury company in the gaming sector. Cohen responded on X with a brief “Letter received,” keeping the buzz alive.

Financial Realities Behind the Hype

Despite the crypto headlines, GameStop’s core business is still under pressure. In its latest earnings release, the retailer reported $1.28 billion in Q4 sales—a 28% drop from the same period last year. For the full 2024 fiscal year, net profits stood at $131 million on $3.8 billion in revenue.

That’s a significant decline from 2023, when GameStop posted $6.7 million in profit on $5.3 billion in revenue. The decline suggests that the BTC move could also be a tactic to shift focus and buy time while the company repositions itself.

GameStop’s pivot into Bitcoin is more than a financial maneuver—it’s a branding play. Once at the center of the 2021 meme stock frenzy, the company is now looking for relevance in a changing retail and digital landscape. By embracing Bitcoin, it aligns itself with tech-forward companies like Tesla, Block, and, of course, Strategy.

In previous years, GameStop experimented with NFTs and hired tech talent from companies like Amazon and Chewy. But many of those efforts fell flat, including the quiet shutdown of its NFT marketplace. BTC may be the company’s next big bet to evolve beyond being a legacy retailer.

Risk vs. Reward

Using BTC as a reserve asset is still controversial. Analysts warn that the cryptocurrency’s volatility makes it a risky foundation for corporate finances. “If GameStop were to buy all Bitcoin with their $4.6 billion in cash… the stock would drop five bucks,” Wedbush analyst Michael Pachter told Yahoo Finance.

However, Bitcoin’s rising reputation as a hedge against inflation and fiat instability is attracting corporate interest. For GameStop, it could offer both a financial hedge and a headline-grabbing pivot to tech relevance.

What Comes Next?

Investors reacted positively to the Bitcoin news, pushing GME shares higher in after-hours trading. But the real test will be whether the decision delivers more than temporary hype. Will GameStop commit to deeper tech transformation? Or will this be another short-lived pivot?

Disclaimer: This article is for informational and analytical purposes only and does not constitute financial advice. The content is based on publicly available information and should not be relied upon for investment decisions.