Gamestop Corporation makes its switch to Crypto with plans to invest part of his cash reserve of millions of dollars in Bitcoin and Stablecoins.
After a unanimous approval from the Board of Directors, Gamestop confirmed that it will assign part of his business cash, and possibly future debt spending, in the direction of acquiring digital assets such as Bitcoin, a CNBC of 25 March report claimed.
The strategy was set out in the GameStop winning report, which stated that the updated investment policy of the company is now enabling the retention of certain cryptocurrency assets. The report explicitly mentioned Bitcoin and Stablecoins as part of his new Treasury approach.
“The investment policy of the company allows investments in certain cryptocurrency assets, including Bitcoin and stablecoins, and if the company, or Bitcoin or by the US dollar-mixed stablecoins, the company will be exposed to certain risks in connection with certain risks.”
Gamestop Q4 and tax year 2024 results
Gamestop (GME) shares were initially more than 6% in after-hours trade after Nieuws broke over his Bitcoin investment plan, but the rally lost steam and shares ended the day decrease from 0.82% on March 25.
From 1 February, the Gamestop’s cash pile was more than $ 4.77 billion, according to the Q4 -Win strate report, giving the company sufficient financial room to explore the exposure to crypto.
Although Gamestop has not specified how much bitcoin it intends to buy, the move reflects a growing trend at companies to use Crypto as a spareboard.
The Buzz around Gamestop’s Crypto ambitions had already started earlier this year, when CEO Ryan Cohen posted a cryptic photo with strategy chairman and Bitcoin lawyer Michael Saylor.
Although the post did not contain any information, speculation has that Gamestop may have investigated something that is related to Bitcoin to an increase of 7% in its share price.
Only a few days later, Strive Asset Management CEO Matt Cole publicly called on Gamestop to hire Bitcoin as a spare walk. In a letter addressed to Cohen, Cole argued that the move could reform the financial future of the company and position it as a pioneer in the gaming industry.
“We believe that Gamestop has an incredible opportunity to transform his financial future by becoming the most important Bitcoin Treasury company in the gaming sector,” he wrote on 24 February.
