GameStop's Digital Leap

GameStop Board Approves Adding Bitcoin to Treasury Reserve Asset

GameStop, the US-based video game retailer, has announced that its board of directors has approved the addition of bitcoin to its treasury reserve asset, marking a significant move into the cryptocurrency market.

According to a filing with the US Securities and Exchange Commission (SEC), GameStop's board has given the green light for the company to invest in bitcoin, which will be held as a reserve asset on its balance sheet. The move is seen as a way for the company to diversify its investments and potentially earn returns that are not correlated with its core business.

GameStop's decision to add bitcoin to its treasury comes as the cryptocurrency has seen a significant surge in value in recent months. Bitcoin's price has more than doubled since the start of the year, and it has gained over 400% in the past 12 months.

The company's quarterly reports, which were also released on Monday, showed a significant increase in profit. GameStop reported a net income of $80.1 million in the quarter ending January 29, compared to a net loss of $14.6 million in the same quarter last year.

The company's revenue also saw a significant increase, rising 25.5% year-over-year to $1.3 billion. The growth was driven by strong demand for gaming consoles and accessories, particularly from the PlayStation 5 and Xbox Series X.

GameStop's move into the cryptocurrency market is seen as a way for the company to leverage its existing customer base and potentially attract new customers who are interested in digital assets. The company has not disclosed the amount of bitcoin it plans to purchase or the timing of the investment.

The move has been welcomed by investors, with GameStop's stock price rising over 10% in early trading on Monday. The company's market capitalization has also increased, with its value now standing at over $10 billion.