GameStop Corporation’s (GME) board of directors unanimously approved the plan to buy digital assets.
According According to an article published by CNBC on March 25, the company said that a part of its cash reserves or future debt issues would be used to purchase Bitcoin.BTC) and US-dollar-pegged stablecoins.
A fourth-quarter report on earnings, published by the company on March 25, confirmed its plan to buy Bitcoins 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 is a document that explains the following:
GameStop’s cash reserve was more than $4.7 billion on February 1 compared to $921.7 millions a month earlier.
Net sales for the retailer of video games were $1.283 Billion in the fourth quarter, and $3.823 Billion during fiscal 2024.
GameStop’s quarterly financial statements. Source: GameStop
Related: GameStop buying Bitcoin would ‘bake the noodles’ of TradFi: Swan exec
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GameStop defied convention when, during the pandemic, it was the focal point of a meme-stock frenzy which changed the fortunes for the company. GameStop has improved in the years since, and is on track to achieve profitability again by 2023.
Rumors about GameStop’s interest in Bitcoin GME’s stock rose in value after the GME-issued shares circulated in February.
In the first week of this month, GameStop CEO Ryan Cohen posted a photo without a caption on Facebook with Strategy’s executive chairman, Bitcoin bull Michael Saylor. This further increased anticipation for an impending BTC buy.
Source: Ryan Cohen
GameStop has now added Bitcoin to its financial statement, over a month after Strategy.
Saylor, in an announcement made earlier this week by Strategy announced the end of its contract. acquired an additional 6,911 BitcoinThis brings its stockpile total to 506,137 BTC. This company holds approximately 2.4% of Bitcoin’s total supply.
Related: Strategy announces 10% preferred stock offering to buy more Bitcoin
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Source: cointelegraph.com
