GameStop shares surge after firm pledges to buy bitcoin, close physical stores

Core Viewpoint - GameStop's board has unanimously approved the addition of bitcoin as a treasury reserve asset, reflecting a strategic shift towards cryptocurrency integration [1][5] Financial Performance - GameStop reported a fourth-quarter net income of $131.3 million, more than doubling from$63.1 million in the same period last year [6] - The company's fourth-quarter revenue was $1.28 billion, down from$1.79 billion a year earlier [7] Strategic Moves - The decision to invest in bitcoin aligns with a broader trend in corporate rebranding and integration of cryptocurrency into business operations, similar to Strategy's recent changes [2][4] - GameStop plans to use a portion of its cash or future debt or equity issuances for bitcoin investments, although it did not specify the maximum amount [5][8] Operational Challenges - GameStop continues to face challenges in its core retail business due to a shift towards digital downloads, game streaming, and e-commerce [7] - The company has aggressively cut costs, closing 590 stores in the United States in fiscal 2024 and plans to close a significant number of additional stores in fiscal 2025 [7]