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GameStop hints at future Bitcoin purchases following board approval

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GameStop Corporation (GME), the video game retailer turned memecoin stock, is reportedly moving to invest in Bitcoin after its board unanimously approved a plan to acquire digital assets. 

According to a March 25 CNBC report, the company announced that it would use a portion of its corporate cash or future debt issuances to invest in Bitcoin (BTC) and US-dollar-pegged stablecoins. 

The plan was further corroborated by the company’s fourth-quarter earnings report, which was released on March 25 and showed intent to acquire Bitcoin and stablecoins. 

“[T]he Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and US dollar-denominated stable coins,” the financial statement read.

GameStop’s cash reserves stood at more than $4.77 billion as of Feb. 1, compared to just $921.7 million one year earlier. 

The video game retailer posted $1.283 billion in net sales during the fourth quarter and $3.823 billion for fiscal 2024.

GameStop’s quarterly financial statements. Source: GameStop

Related: GameStop buying Bitcoin would ‘bake the noodles’ of TradFi: Swan exec

Following the Strategy playbook

GameStop broke from convention during the pandemic when it became the center of a meme stock frenzy that turned the company’s fortunes around. Since then, the video game retailer has shown signs of improvement, with a return to profitability in fiscal 2023. 

Rumors about GameStop’s interest in Bitcoin began to circulate in February, triggering a rise in GME stock.

Earlier in the month, GameStop’s CEO, Ryan Cohen, posted an uncaptioned photo on social media alongside Strategy executive chairman and Bitcoin mega bull Michael Saylor, which further stoked anticipation of an impending BTC purchase.

Source: Ryan Cohen

Now, more than one month later, GameStop appears poised to take a page out of Strategy’s playbook by adding Bitcoin to its balance sheet.

Earlier this week, Saylor announced that Strategy had acquired an additional 6,911 Bitcoin, bringing its total stockpile to 506,137 BTC. The company now holds roughly 2.4% of Bitcoin’s total supply. 

Related: Strategy announces 10% preferred stock offering to buy more Bitcoin

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Wells Fargo and five others object to OKX-ICE tokenized stock listings: Report

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As of Friday, 22 companies had filed objections as part of the joint venture’s proposed tokenized stock platform under the SEC’s innovation exemption.

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IRS plans lower tax disclosure penalties, including for crypto: Forbes

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The US tax agency is targeting faster resolutions and more flexible payment options for taxpayers voluntarily disclosing past tax violations under a planned program overhaul.

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Initia halts blockchain after exploit reportedly drains over $2.6M

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The blockchain suspended its layer-1 network and rollups after security researchers identified unauthorized token minting and millions in assets transferred to Ethereum.

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