GameStop Incorporates Bitcoin into Its Financial Strategy
GameStop has announced it will incorporate Bitcoin as part of its treasury reserves.
Key Points:
- The company stated its board approved the integration of Bitcoin as a reserve asset.
- As of the end of Q4, GameStop held cash and cash equivalents totaling $4.76 billion.
- This decision aligns with hints made by CEO Ryan Cohen weeks prior when he suggested potential Bitcoin purchases.
GameStop (GME) joins a growing list of public companies integrating Bitcoin into their treasury strategies.
Alongside its latest earnings report, GameStop revealed that their board has unanimously approved adding Bitcoin to its financial structures.
CEO Ryan Cohen garnered attention in early February when he shared a photo with Michael Saylor, Executive Chairman of Strategy, during an event at Mar-a-Lago.
Several days after that meeting, Matt Cole, CEO of Strive Asset Management, wrote to Cohen suggesting that GameStop utilize a portion of its near $5 billion cash reserve to buy Bitcoin. Strive holds an ownership stake in GME through its ETFs.
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector,” said Cole.
Cohen further prompted speculation with his tweet, “Letter received.”
After hours trading saw GME shares rise by 5.7%, while Bitcoin increased slightly to trade at $88,500, reflecting a 0.2% gain over the last 24 hours.
