GameStop Corporation (GME) became the latest high-profile publicly traded company to add Bitcoin (BTC) as a treasury reserve asset after its board unanimously approved a plan to acquire digital assets.
GameStop Joins Bitcoin Treasury Trend
In February, CNBC reported that the video game retailer turned memecoin stock was exploring investments in alternative asset classes, including Bitcoin. The report came after GameStop Chairman and CEO Ryan Cohen got tongues wagging after posting a picture on X standing next to BTC uber-bull and Strategy co-founder Michael Saylor.
A week later, GameStop received a proposal from Strive Asset Management that the favourite meme stock of the pandemic era become a “premier Bitcoin treasury company in the gaming sector” by converting a portion of its nearly $5 billion cash reserves into Bitcoin.
Cohen further raised eyebrows when he wrote “Letter received” on X without elaborating further, adding to speculation of an upcoming Bitcoin purchase.
Borrowing A Page From Strategy’s Playbook
After meeting Saylor, GameStop seems poised to borrow a page from Strategy’s playbook by adding Bitcoin to its balance sheet. In its fourth quarter earnings report released on March 25, GameStop confirmed its intent to purchase BTC and stablecoins.
“The Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and US dollar-denominated stablecoins,” the financial statement said.
Several companies in the U.S. have embraced Bitcoin as a treasury reserve asset, but the practice was pioneered by Strategy, which has been buying Bitcoin since 2020. Earlier this week, the Saylor-helmed company bought 6,911 BTC for roughly $584.1 million, bringing its total stockpile past 500,000 BTC — by far the biggest amount of the world’s largest crypto held by a corporate entity. Strategy now owns approximately 2.4% of Bitcoin’s total supply.
GameStop’s move to adopt Bitcoin as a viable investment comes as Bitcoin trades below $89,000, down 19% from a peak of $108,786 in January.
