GameStop Board Votes to Add Bitcoin as Treasury Reserve Asset

Core Viewpoint - GameStop's board has unanimously decided to add bitcoin as a treasury reserve asset, indicating a shift in its investment strategy to include cryptocurrency [1][2]. Financial Performance - GameStop reported net sales of $3.823 billion for fiscal year 2024, a decrease from$5.273 billion in the previous year [4]. - The company's net income increased to $131.3 million in fiscal year 2024, up from$6.7 million in fiscal year 2023 [4]. Strategic Moves - The company has completed its divestiture in Italy and the wind-down of store operations in Germany, reflecting its ongoing adjustments to the changing retail landscape [5]. - GameStop's CEO is focused on cutting costs and streamlining operations to revive the brick-and-mortar business amid challenges from digital distribution [5]. Bitcoin Strategy - GameStop has not set a maximum limit on the amount of bitcoin it may acquire and retains the option to sell any bitcoin purchased [2]. - The company's bitcoin strategy is untested and may face risks, including market volatility and potential manipulation [3][2]. - This strategy mirrors that of MicroStrategy, which gained attention for its significant investments in bitcoin [6].