| Key Points: – GameStop’s board has approved Bitcoin as a treasury reserve asset, following speculation about the company’s interest in cryptocurrency. – The stock jumped nearly 13% in premarket trading after the announcement. – Analysts remain skeptical, comparing the move to MicroStrategy’s Bitcoin strategy, but questioning its long-term impact on GameStop’s stock. |
GameStop (NYSE: GME), the video game retailer-turned-meme stock, saw its shares surge nearly 13% in premarket trading on Wednesday after confirming plans to allocate a portion of its cash reserves to Bitcoin. The move signals yet another pivot for the company as it looks to redefine its business strategy and capture investor interest amid ongoing challenges in the retail gaming sector.
In a statement released Tuesday, GameStop announced that its board of directors unanimously approved an update to its investment policy, officially allowing the company to purchase and hold Bitcoin as a treasury reserve asset. This decision follows weeks of speculation, fueled in part by a cryptic social media post from GameStop Chairman Ryan Cohen in early February, featuring a meeting with MicroStrategy CEO Michael Saylor, a well-known Bitcoin advocate.
GameStop’s announcement aligns it with MicroStrategy (NASDAQ: MSTR), a company that has aggressively invested in Bitcoin as part of its corporate treasury strategy. MicroStrategy currently holds over 447,000 Bitcoin, a move that has significantly boosted its stock price during Bitcoin bull runs.
The decision to invest in Bitcoin represents a major strategic shift for GameStop, which has struggled to define a clear business model in recent years. Following its infamous Reddit-fueled short squeeze in 2021, GameStop has experimented with NFT marketplaces, digital asset wallets, and e-commerce expansions, but none have significantly altered its financial trajectory.
While Bitcoin has seen strong gains in 2024 and 2025, GameStop’s move raises questions about its long-term financial strategy. Unlike MicroStrategy, which transformed itself into a Bitcoin-centric company, GameStop remains primarily a retail business with declining revenue. The company’s fourth-quarter earnings report, also released Tuesday, revealed a 28% decline in net sales year-over-year, further emphasizing the financial struggles it faces.
Despite the stock’s rally, analysts remain divided on whether GameStop’s Bitcoin investment will provide meaningful value. Wedbush analyst Michael Pachter voiced concerns about the decision, noting that MicroStrategy trades at approximately twice the value of its Bitcoin holdings, meaning that even a full allocation of GameStop’s $4.6 billion cash reserves into Bitcoin may not provide the same level of stock appreciation.
Additionally, Bitcoin’s volatility presents a risk for GameStop, which is already navigating declining brick-and-mortar sales, shifting consumer preferences, and increased digital gaming competition. A sudden drop in Bitcoin’s price could negatively impact GameStop’s financial position, leaving it with fewer options to reinvest in its core business.
GameStop’s Bitcoin strategy will likely fuel speculation and volatility in its stock price, much like previous meme stock cycles. However, whether this move translates into long-term value remains uncertain. Investors will be watching closely to see how GameStop executes its Bitcoin investment plan and whether it adopts a broader digital asset strategy beyond cryptocurrency holdings.
For now, the announcement has given GameStop bulls a new reason to rally, but the company’s future remains uncertain as it bets on Bitcoin to help redefine its financial outlook.
