GameStop, the video game retailer that’s struggled to reinvent itself amid declining sales, just threw a financial Hail Mary. The company announced on March 25, 2025, that its board unanimously approved adding Bitcoin to its treasury reserves. Not a joke. Dead serious.
The move sent GameStop‘s stock surging 8% in after-hours trading. Investors love a wild card, apparently. This comes after the company reported its third consecutive quarterly profit – $131.3 million or 29 cents per share. Not bad for a business that’s been closing stores like it’s going out of style. They shuttered 590 U.S. locations in fiscal 2024 alone.
GameStop’s sitting on a cash pile of $4.775 billion. Now they’re planning to convert some of that into digital gold. How much? They won’t say. There’s no maximum limit set. Bold move or desperate gambit? You decide.
GameStop’s crypto gamble: billions in cash, unlimited Bitcoin conversion. Bold reinvention or last-gasp desperation play?
They’re following in the footsteps of MicroStrategy (now “Strategy”) and about 170 other public companies with Bitcoin on their books. CEO Ryan Cohen was spotted with Michael Saylor recently. Coincidence? Hardly. Social media’s calling this “Strategy lite.” Not wrong.
The timing’s interesting. Trump administration is crypto-friendly. The recent executive order for U.S. Treasury modernization could further legitimize cryptocurrencies as mainstream financial instruments. Bitcoin’s trading at $86,858 – down 20% from January’s peak. Buy the dip, as they say. The timing is particularly notable with the Bitcoin halving scheduled for April 2024, an event that historically precedes significant price increases.
GameStop admits this approach is “untested” and “may prove unsuccessful.” No kidding. Bitcoin’s about as stable as a three-legged chair. The company acknowledges the “high volatility” and “significant price fluctuations.” At least they’re honest.
With revenue down from $1.794 billion to $1.283 billion year-over-year, GameStop needs something dramatic. Recent reports show a 28% decline in sales as the company continues to shrink its physical presence in the market. Traditional retail‘s dying. Digital downloads killed their business model. Bitcoin won’t fix that fundamental problem.
But hey, it’s trending on Stocktwits! Analysts say it gives the company breathing room to innovate. Maybe. Or maybe it’s just a distraction from the fact that videogame stores in malls aren’t exactly the future. Time will tell if this Bitcoin bet pays off or becomes another desperate footnote in retail history.
