- Video game retailer Gamestop announced to buy BTC with its corporate cash.
- Board has approved a plan to buy bitcoin with its corporate cash, echoing a move made famous by Microstrategy.
- The stock jumped more than 6% in extended trading following the news.
Gamestop follows the path of Microstrategy
The Company will be following MicroStrategy’s, now renamed Strategy, lead as it purchased billions of dollars worth of bitcoin over recent years to become the largest institutional owner of the lead cryptocurrency. That move triggered a quick climb for Strategy’s shares.
GameStop’s move into cryptocurrencies is the latest initiative by CEO Ryan Cohen to try to turn around the ailing brick and mortar business. Since taking the rein at company, Cohen has concentrated on reducing expenses and simplifying operations to make the business profitable.
The company indicated the move could subject it to price volatility that comes with cryptocurrency prices.
Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful,” GameStop said in a U.S. Securities and Exchange Commission filing.
Bitcoin, the largest cryptocurrency in the world, has been on a roller coaster ride since President Donald Trump was elected. After surging and breaking through the $100,000 mark, bitcoin has fallen around 18% from its all time high to a current price of around $88,000.
Alongside the cryptocurrency news, investors also welcomed an increase in GameStop’s fourth quarter earnings. The company reported net income of $131.3 million, significantly higher than the $63.1 million that was posted in the same quarter last year.
Market on the Gamestop move
GameStop’s shares saw a significant jump, increasing more than 15% in premarket trading. This was despite the fact that the company saw a 28% drop in fourth quarter revenue. The investment approach is similar to that of firms such as Strategy (MicroStrategy), which have also added Bitcoin to their financial plans.
The cryptocurrency market reacted favorably to GameStop’s statement. The price of Bitcoin surged 2.1%, as other digital assets like XRP, Ethereum, Solana, and Cardano also recorded upticks. It indicates a greater risk on mode among investors amid corporate embrace of cryptocurrencies.
Experts say that by linking its financial strategy to the highly volatile cryptocurrency market, GameStop could see its share price become more volatile. But the action also places the company in a rising trend of corporate investment in digital assets, which could be a sign of a strategic change to keep up with the changing financial environment. As of March 26, 2025, the price of Bitcoin is $87,473.
Also Read: Who Was Hal Finney? The Bitcoin Enthusiast Who Might Be Satoshi
