GameStop’s shares surged 7% in after-hours trading after the company announced its board’s unanimous approval to add bitcoin as a treasury reserve asset. This decision mirrors Strategy’s move earlier this year to rebrand and emphasize its focus on the cryptocurrency sector. Following President Trump’s executive order to establish a strategic reserve of cryptocurrencies, GameStop plans to invest part of its cash or future debt or equity issuances into bitcoin, though the exact amount remains undisclosed. The company also reported a significant increase in fourth-quarter net income, doubling from $63.1 million to $131.3 million year-over-year, driven by cost-cutting measures. GameStop continues to face challenges in its core business due to shifts toward digital downloads, game streaming, and e-commerce. To adapt, the company closed 590 U.S. stores in fiscal 2024 and expects to close more in fiscal 2025. Fourth-quarter revenue fell to $1.28 billion from $1.79 billion the previous year. — news from New York Post
