GameStop Plans Store Closures, Bitcoin Investment Strategy

GameStop is undergoing a significant restructuring under CEO Ryan Cohen, announcing plans to close a considerable number of its stores while also investing in Bitcoin as a treasury reserve asset. The company has already closed about 1,000 stores globally, primarily in the U.S. and Europe, and anticipates further closures as part of its strategy to adapt to changing consumer habits. In its recent SEC filings, GameStop revealed that a portion of its cash and future debt issuances would be allocated for Bitcoin investments, though it acknowledged the inherent risks associated with this volatile asset. While the company reported a fourth-quarter net income of $131.3 million, its annual sales continue to decline, reflecting ongoing challenges in the retail gaming sector. Analysts suggest that the shift towards Bitcoin may be more about defense against irrelevance than a genuine commitment to retail. Despite the closures and financial struggles, GameStop's collectibles segment has shown some growth, signaling a potential pivot for the company.