GameStop Board Unanimously Approves Bitcoin As Treasury Reserve Asset
Summary
GameStop's board has approved a plan to invest corporate cash reserves in Bitcoin, reflecting a strategy similar to that of MicroStrategy. The company holds nearly $4.8 billion in cash and may allocate part of this, along with future debt and equity issuances, to Bitcoin and stablecoins. GameStop's stock rose over 6% following the announcement. CEO Ryan Cohen aims to modernize the company's financial strategy and attract new investors while acknowledging the volatility and risks associated with Bitcoin investments. GameStop reported a net income of $131.3 million for the fourth quarter, more than double the previous year's earnings. Bitcoin has recently recovered to around $88,000 after a period of decline.
