- GameStop invests in Bitcoin in its treasury, following the likes of Tesla and MicroStrategy.
- GME stock jumped 15% as investors greeted GameStop’s bold crypto move.
- Despite declining sales, GameStop’s strong earnings had investors optimistic about its turnaround.
GameStop shares soared as much as 15 percent to $29.1 after the company announced plans to add Bitcoin to its treasury reserves. The board-approved move is a strategic shift that aims to diversify the company’s assets, following the move by other companies to take advantage of Bitcoin as a hedge against financial uncertainty.
GameStop Enters the Bitcoin Adoption Wave
The action places GameStop in the company of MicroStrategy and Tesla, firms that have embraced Bitcoin into their balance sheets. The action represents a revolutionary move for GameStop as it seeks to capitalize on the increasing adoption of digital assets in traditional finance.
Grey BTC wrote on X that GameStop nearly has $5 billion in cash reserves, a firm foundation backing its Bitcoin adoption. GameStop made its updated investment strategy official in a press release on March 25, 2025, in the form of Globe Newswire.
GameStop’s fourth quarter and fiscal year 2024 report, published before the Bitcoin news broke, provided some important financials. The company posted a net income of $131.3 million, a far cry from $63.1 million for the same period last year, thanks to operational efficiency.
But sales fell from $1.794 billion to $1.283 billion, a reflection of broader retail troubles. Despite the decline, GameStop topped estimates by 30 cents a share, twice as much as analysts’ 8 cents.
Market Reactions and Broader Implications
GameStop’s adoption of Bitcoin sent investors into a frenzy that was mirrored in increased after-hours volume and a precipitous increase in GME share prices. The cryptocurrency market also responded positively, with Bitcoin up 2.3 percent and altcoins like Ethereum and Solana noting muted gains in prices. DeFi tokens like Aave and Uniswap, however, saw small-scale inflows, indicating institutional demand.
In addition, volumes on centralized exchanges jumped by 11 percent, as per CoinMarketCap. Institutional players also grew more active, with whale trades above $1 million, as witnessed by Glassnode.
While the SEC has not commented on GameStop’s move so far, earlier corporate Bitcoin acquisitions have drawn regulators’ attention. The decision might encourage other firms in the gaming and retail sectors to consider crypto asset inclusion.
