Grapevine, Texas, GameStop, a major player in the video game retail industry, made a groundbreaking move by updating its corporate investment policy to include Bitcoin. This decision was met with enthusiasm from investors, as it led to a surge in GameStop’s shares during extended trading on Tuesday.
The company’s board of directors reached a unanimous decision to incorporate Bitcoin into its investment strategy, following recent reports hinting at GameStop’s interest in venturing into the world of cryptocurrencies. Notable among these reports was GameStop CEO Ryan Cohen’s social media post last month featuring himself alongside Michael Saylor, the co-founder of Strategy, formerly known as MicroStrategy, the corporate entity holding the largest quantity of Bitcoin. At the time of the announcement, Bitcoin’s value hovered around $88,000 in the market.
As a result of this momentous decision, GameStop’s stocks rose by over 6% during after-hours trading on Tuesday. Despite experiencing a 19% decline in stock performance for the year leading up to this announcement, the market responded positively to the news.
Coinciding with the Bitcoin update, GameStop also released its fiscal fourth-quarter results. While the company saw a 28% decrease in revenue year-over-year, amounting to $1.28 billion, there was an increase in adjusted net income, reaching $136.4 million or 30 cents per share. This growth in earnings was attributed to GameStop’s strategic cost-cutting measures.