GameStop to shutter hundreds of stores, shift focus to cryptocurrency and e-commerce.

GameStop to Close Significant Number of Stores, Will Invest Heavily in Bitcoin

GameStop, the struggling video game retailer, announced Wednesday that it plans to close a significant number of stores as part of a restructuring effort aimed at cutting costs and investing in new technologies.

According to the company, the store closures will be part of a multi-year plan to transform its business and improve its financial performance. The exact number of stores to be closed was not disclosed, but GameStop did say that the move will result in a significant reduction in its store count.

In addition to the store closures, GameStop also announced that it will be investing heavily in the cryptocurrency market, specifically in Bitcoin. The company said it will be allocating a portion of its cash reserves to purchase and hold Bitcoin, which it believes has long-term potential as a store of value.

"We are excited to take this step and diversify our portfolio," said GameStop CEO Matt Furlong. "We believe that Bitcoin has the potential to be a valuable long-term investment for our company, and we are committed to exploring all opportunities to grow our business and create value for our shareholders."

GameStop's decision to invest in Bitcoin comes as the cryptocurrency market continues to experience significant volatility. However, despite the recent downturn, many experts still believe that Bitcoin has long-term potential and could potentially become a widely accepted form of currency.

The company's decision to close stores and invest in Bitcoin is seen by many as a desperate attempt to turn around its struggling business. GameStop has been facing significant competition from online retailers and digital game sales, which has led to a decline in its sales and profits.

The company's stock price has been under pressure in recent months, and its decision to close stores and invest in Bitcoin is seen by some as a last-ditch effort to revitalize its business.

GameStop's plan to close stores and invest in Bitcoin is expected to be completed by the end of 2023. The company's financial performance is expected to be impacted in the short term, but management believes that the long-term benefits will be significant.

"We are confident that this plan will position GameStop for long-term success and create value for our shareholders," said Furlong.