GameStop just jumped headfirst into the Bitcoin pool. The struggling retailer announced on March 25, 2025, that its board unanimously approved adding Bitcoin to its investment policy. No cap on how much they might buy. Bold move for a company that was nearly dead a few years ago.
GameStop’s Bitcoin dive shows a once-struggling retailer making an audacious bet with unlimited investment potential.
The announcement sent GameStop shares soaring 8% in extended trading, with another 14% bump the next day. Investors clearly loved the news. GameStop’s sitting on a mountain of cash—$4.775 billion at the end of Q4. That’s a lot of potential Bitcoin buying power.
This wasn’t totally out of the blue. Rumors had been swirling after CEO Ryan Cohen met with Michael Saylor, the Bitcoin evangelist behind Strategy (formerly MicroStrategy). The stock was down about 19% year-to-date before this crypto announcement breathed new life into it. Market analysts expect Bitcoin to break above $90,000 soon as adoption increases among major corporations. Guess those conversations were productive.
The timing is interesting. GameStop just posted its third consecutive quarterly profit, with adjusted net income of $136.4 million. Not bad for a company many left for dead. Revenue did tank 28% year-over-year to $1.28 billion, but who cares when your cost-cutting efforts are working so well?
Bitcoin was trading just under $88,000 when GameStop made its announcement. The company joins a growing list of corporations holding Bitcoin as a treasury reserve. Many companies view Bitcoin as a hedge against inflation due to its fixed supply cap of 21 million coins. Strategy leads the pack, but Robinhood and Coinbase are in the game too.
Wedbush analysts bumped their price target to $11.50 but still maintain an “underperform” rating. Guess they’re not fully convinced by GameStop’s Bitcoin romance.
GameStop admits this strategy is “untested” and “may prove unsuccessful.” No kidding. They didn’t specify how much Bitcoin they’ll actually buy, leaving investors to speculate.
The move aligns nicely with the crypto-friendly Trump administration policies. Smart timing or just lucky? Either way, GameStop is now part of the corporate Bitcoin adoption trend.
Could this trigger another legendary GameStop short squeeze? Wall Street’s watching closely. One thing’s certain—GameStop isn’t playing it safe anymore. They’re betting big on Bitcoin.
