GameStop has announced plans to invest corporate cash in Bitcoin following unanimous board approval on March 25, 2025. The video game retailer's stock jumped more than 6% in extended trading after the announcement. The company will use a portion of its cash reserves or future debt and equity issuances to purchase Bitcoin and U.S. dollar-denominated stablecoins as reported by BTC Peers.

GameStop's financial position appears strong, with nearly $4.8 billion in cash as of February 1, a substantial increase from $921.7 million a year earlier. The company has not established a maximum limit on its potential Bitcoin purchases, according to its fourth-quarter earnings report.

Rumors about GameStop's Bitcoin plans first emerged in February when CEO Ryan Cohen was spotted meeting with Michael Saylor, Strategy's executive chairman. GameStop had previously ventured into cryptocurrency with digital wallets in 2022, though this service was discontinued in 2023.

The move follows software company Strategy (formerly MicroStrategy), which has become the largest corporate holder of Bitcoin. Just days before GameStop's announcement, Strategy acquired an additional 6,911 Bitcoin for $584 million, bringing its total holdings to 506,137 BTC purchased at an average price of $84,529 each.

In its SEC filing, GameStop acknowledged potential risks: "Bitcoin is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful."

Bitcoin has experienced recent volatility:

• Reached an all-time high above $100,000
• Currently trading at approximately $88,000
• Down about 18% from its record peak

Investors also responded positively to GameStop's improved financial performance. The company reported fourth-quarter net income of $131.3 million, more than double the $63.1 million earned during the same period last year. CEO Ryan Cohen continues working to revitalize the struggling brick-and-mortar business through cost-cutting measures and streamlining operations.

The announcement comes amid broader political momentum for Bitcoin. Wyoming Senator Cynthia Lummis recently reintroduced the BITCOIN Act to create a federal Bitcoin reserve, following President Trump's executive order on the topic. The proposed legislation would establish a "decentralized network of secure Bitcoin vaults" with plans to purchase 1 million bitcoin units over time.