GameStop dives into bitcoin investment as store closures loom

In March 2025, GameStop, the video game retailer based in Texas, announced its decision to revise its investment policy, allowing the company to invest some of its cash reserves in bitcoin. This revision comes amid increasing attention on cryptocurrency as a potential asset class, especially following the broader acceptance of cryptocurrencies in financial markets. The company's move reflects its attempt to explore new avenues for growth and profitability, given the challenges faced in retail sales and the ongoing decline of physical stores. GameStop stated that it holds approximately $4.8 billion in cash, allowing for these investments without compromising operational liquidity. The company's board, including CEO Ryan Cohen, unanimously approved this policy change. It was announced that part of the cash reserves or proceeds from future debt and equity issuances could now be allocated towards bitcoin, with no maximum limit on the amount to be acquired. This change aligns with efforts to modernize GameStop’s approach in a rapidly evolving financial landscape, fueled by increasing interest in digital currencies. Furthermore, alongside the investment announcement, GameStop indicated plans to close a significant number of stores as part of a strategy to cut costs and streamline operations. As online gaming and digital formats continue to dominate the market, many traditional retail stores have struggled, leading to reduced foot traffic and sales. GameStop's operational changes highlight a broader trend in the retail sector where companies are reevaluating their physical presence in favor of online platforms and new investment strategies. GameStop's stock price responded positively to the announcement, surging by 7% in after-hours trading. This volatility mirrors the company's stock history, characterized by sharp fluctuations often tied to investor sentiment and external market factors. Despite this rise, GameStop's stock price remains significantly lower than its peak, suggesting ongoing concerns among investors regarding the firm’s long-term viability. By venturing into cryptocurrencies, GameStop positions itself to engage with a growing market, potentially attracting new investors who are increasingly interested in digital assets as part of their portfolios.