GameStop Doubles Down on Bitcoin, Plans More Store Closures in 2025
GameStop announced on Tuesday that its board has unanimously approved the addition of Bitcoin as a treasury reserve asset, following a strategy similar to the company formerly known as MicroStrategy, which recently rebranded as Strategy to emphasize its commitment to cryptocurrency.According to Strategy, the name change represents a "natural evolution" as the company integrates Bitcoin—the world's most recognized cryptocurrency—into the core of its business operations.
GameStop’s decision comes shortly after President Donald Trump’s executive order earlier this month, which established a strategic reserve of cryptocurrencies using tokens already owned by the government.
The retailer stated in a regulatory filing that it plans to allocate a portion of its cash, future debt, or equity issuances to Bitcoin investments but did not disclose a specific cap on its purchases.
Financial Performance & Store Closures
Despite ongoing challenges in the traditional video game retail business, GameStop reported a sharp increase in fourth-quarter profit, largely driven by cost-cutting measures. The company’s net income more than doubled to $131.3 million, up from $63.1 million in the same period last year.However, revenue declined to $1.28 billion, down from $1.79 billion a year earlier, reflecting continued struggles with digital game downloads, streaming, and e-commerce competition.
To combat these pressures, GameStop has been aggressively reducing its brick-and-mortar footprint. After shutting down 590 stores across the U.S. in fiscal 2024, the company anticipates closing a significant number of additional locations in 2025.
With Bitcoin now a part of its financial strategy, GameStop is signaling a bold shift toward digital assets—though whether this gamble will pay off remains to be seen.