Mar 26, 2025 - Business

GameStop stock soars on bitcoin investment strategy and store closures

GameStop's stock surged Wednesday despite plunging revenue after the retailer announced plans to invest in bitcoin and close more stores.

Why it matters: One of the OG memestocks, GameStop is trying to tap into a community of true believers in the future of crypto.

GameStop said Tuesday that "its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset."

It concurrently posted a 28% decline in sales as it continues to shrink its store footprint.
The company closed 960 locations worldwide in the 2024 fiscal year and plans to close "a significant number of additional stores" in the 2025 fiscal year, according to an SEC filing.
GameStop had 3,203 locations as of Feb. 1, including 2,325 in the U.S.

Zoom in: To acquire bitcoin, the company said it could use cash or invest proceeds from future debt and equity issuances.

The plan, though light on details, resembles the one deployed by publicly traded MicroStrategy.
Other companies have resisted targeted efforts to add bitcoin to corporate treasury mixes. Microsoft shareholders voted down one such proposal in December.

The impact: GameStop shares were up about 15% in late-morning trading to $29.09.

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