Gamestop Corp. (NYSE: GME) announced that its board of directors has unanimously approved an update to the company’s investment policy, allowing Bitcoin to be held as a state reserve asset. The decision follows a number of engagements between Gamestop chairman and CEO Ryan Cohen and prominent figures such as Michael Saylor in the Bitcoin industry.
On February 8, Cohen met with strategy chairman and well-known Bitcoin lawyer Michael Saylor, triggering speculation that Gamestop may add BTC to his balance. A few weeks later, Cohen responded to Coindesk via a tweet saying “received letter.” After receiving a letter from Strive Asset Management CEO Matt Cole, which urged GameStop to adopt Bitcoin as a reserve asset.
In his announcement, Gamestop noted that its investment policy now allows investments in “certain cryptocurrency assets, including Bitcoin and US Dollar Denominated StableCecoins.” The company also recognized associated risks, including the potential impact of these investments on its financial results and internal financial controls.
The police update was revealed along with the company’s financial results for the fourth quarter, and the full fiscal year ended February 1, 2025.
For the fourth quarter, Gamestop reported net sales of $ 1,283 billion, a decrease of $ 1,794 billion in the same period the year before. Expenses for sales, general and administrative (SG&A) fell to $ 282.5 million compared to $ 359.2 million in the fourth quarter the year before. Net income for the quarter was $ 131.3 million, up from $ 63.1 million a year earlier. Adjusted EBITDA for the quarter was $ 96.5 million compared to $ 88.0 million in the previous year’s fourth quarter.
Gamestop also revealed that it had $ 4,775 billion in cash, cash equivalents and marketable securities at the end of the quarter. The company completed its exit from Italy and ended the windside of shop operations in Germany during this period.
For the full fiscal year 2024, Gamestop reported net sales of $ 3,823 billion, down from $ 5,273 billion in the 2023 financial year. SG&A Expenses for the year was $ 1.130 billion, compared to $ 1.324 billion in the previous year. The net income for the year reached $ 131.3 million, significantly higher than the $ 6.7 million reported in the 2023 financial year. Adjusted EBITDA for the entire year was $ 36.1 million compared to $ 64.7 million in the previous year.
The company has not yet revealed how much Bitcoin it plans to buy or when it will start acquiring BTC, and CEO Ryan Cohen has not yet commented in public about the addition of Bitcoin to Gamestop’s balance at the time of release.