GameStop Plans Bitcoin Investment to Strengthen Finances

GameStop has announced its decision to invest in Bitcoin as a treasury reserve asset, a move that coincided with the release of its disappointing Q4 2024 earnings report, which showed a 28% revenue decline. The board unanimously approved this strategy, leading to a 6% increase in the company's stock price during after-hours trading. This decision reflects a broader trend among corporations exploring cryptocurrencies, prompted in part by CEO Ryan Cohen's associations with prominent Bitcoin investors like Michael Saylor. While GameStop's revenue fell significantly, it managed to double its net income due to cost-cutting measures. The company aims to leverage Bitcoin investment as a potential way to bolster its financial position moving forward. Although the financial landscape remains challenging, this strategic shift could position GameStop favorably within the evolving digital currency market.