Video gaming retailer GameStop reported an increase in net income last quarter despite a downturn in sales, and said it would invest a portion of its cash balance in Bitcoin.
Its net sales were US$1.28 billion, down from $1.79 billion year-over-year, while its net income more than doubled to reach $131.3 million. GameStop, among the most popular meme stocks, has been targeting a return to consistent profitability.
“During fiscal 2024, we continued to optimise our cost structure to align with our current and anticipated future needs. We will continue to focus on cost containment as we look to operate with increased efficiency,” the company said in a Securities and Exchange Commission filing.
“On March 25, 2025 we announced that, as part of our revisions to the Investment Policy, the Board approved the addition of Bitcoin as a treasury reserve asset, whereby a portion of our cash or future debt and equity issuances may be invested in Bitcoin,” GameStop said. “We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire.”
The company’s board of directors unanimously approved the addition of Bitcoin to its treasury reserve assets, but has acknowledged that Bitcoin’s price fluctuations could impact GameStop’s financial performance. “Our Bitcoin strategy has not been tested and may prove unsuccessful.”
GameStop CEO Ryan Cohen met with Strategy chair Michael Saylor last month. Strategy is the largest corporate holder of Bitcoin, and reached a total of 500,000 coins this week.
Bitcoin’s price rose to a two-week high on Monday, but is still trading more than US$20,000 below its peak of almost $110,000 in January.
GameStop’s fourth quarter earnings also saw operating income rise to US$79.8 million, up from $55.2 million year-over-year, while diluted earnings per share increased by $0.08 to $0.29.
The company said in February that it would sell its operations in France and Canada, as it seeks to scale back its international assets. The company completed its divestment from Italy last quarter, and has been winding down operations in Germany.
GameStop’s (NYSE: GME) share price rose to US$27.50 in extended trading after releasing its earnings results, following a close at $25.40. Its market capitalisation is $11.44 billion.
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