GameStop Corp. announced The company announced that the board unanimously approved a change to its investment policy, which allows Bitcoin to be used as a reserve for its treasury. It was made following a number of meetings between GameStop’s CEO Ryan Cohen as well as prominent Bitcoin-related figures, such Michael Saylor.
Cohen met Michael Saylor. This led to speculations that GameStop might be adding BTC into its balance sheet. Cohen tweeted CoinDesk a few weeks later. stating “Letter received.” GameStop adopted Bitcoin after receiving an email from Strive Asset Management CEO Matt Cole. The letter urged GameStop’s adoption of Bitcoin as their reserve currency.
GameStop has announced its new investment policy, which allows for investments in “certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins.” Moreover, the company acknowledged that these investments could have a negative impact on financial performance and its internal financial control.
This policy update is being released in conjunction with the financial results of the Company’s fourth quarter, and the full fiscal year ending February 1, 2025.
GameStop’s fourth-quarter net sales were $1.283 Billion, down from $1.794 Billion in the previous year. Selling, general and administrative (SG&A) expenses fell to $282.5 million, compared to $359.2 million in the fourth quarter of the previous year. The net income was 131.3 million dollars, compared to $63.1 million the year before. For the quarter, adjusted EBITDA came in at $96.5 million compared with $88.0 million for the same quarter last year.
GameStop disclosed at the end that the company held $4.75 billion of cash, equivalent cash and marketable assets. During this time, the company closed its stores in Germany and completed its exit out of Italy.
GameStop’s net sales for the entire fiscal year of 2024 were $3.823 Billion, a decrease from $5.273 Billion in fiscal 2023. SG&A expenses for the year were $1.130 billion, compared to $1.324 billion in the prior year. Net profit for the fiscal year was $131.3 millions, which is significantly more than the $6.7million reported during the fiscal year of 2023. For the whole year, adjusted EBITDA reached $36.1m compared with $64.7m the previous year.
GameStop has yet to disclose how much Bitcoin they plan to buy or when they will start acquiring BTC. CEO Ryan Cohen also hasn’t publicly commented on adding Bitcoin to GameStop’s balance sheet as of the date of publication.
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Source: bitcoinmagazine.com
