GameStop is the latest to add bitcoin as a corporate treasury asset

Video game retailer GameStop announced Tuesday that it will update its investment policy to add Bitcoin as a treasury reserve asset. No amount was disclosed.

In February, CNBC reported that the favorite meme stock of the pandemic era was exploring investments in alternative asset classes, including Bitcoin and crypto. The report came days after GameStop CEO Ryan Cohen posted a photo on X with Strategy Chairman Michael Saylor.

Earlier this week, Strategy said it purchased 6,911 BTC for approximately $584.1 million, taking its total holdings past 500,000 BTC, by far the largest amount of bitcoin held by a corporate entity.

"[T]he Company's investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins, and if the Company acquires Bitcoin or U.S. dollar denominated stablecoins, the Company will be exposed to certain risks associated with Bitcoin or stablecoins, respectively," GameStop wrote Tuesday in its fourth-quarter earnings report.

Keith Gill, better known by his online pseudonym "Roaring Kitty," and the subreddit WallStreetBets were at the center of the 2021 meme stock frenzy when stocks like GameStop and AMC, as well as cryptocurrencies like Dogecoin, witnessed massive amounts of trading volume.

The retailer dipped its toes into the world of non-fungible tokens, but it didn't last long. GameStop killed its NFT wallet in August 2023 and  closed its NFT marketplace  in February 2024, citing regulatory uncertainty. 

Also on Tuesday, GameStop reported net income of $131.3 million for the fourth quarter, compared to a net income of $63.1 million for the prior year’s quarter. The company has $4.75 billion in cash as of Feb. 1.

GameStop's stock popped up about 7% to $27 per share in after-hours trading. At the height of the pandemic meme stock craze, shares eclipsed the $80 level. The company currently has a market cap of around $11.3 billion.

The GME memecoin, which has no relation to GameStop, is up 32% to $0.00262, according to CoinGecko data.