GameStop Corp. announced that the board unanimously approved updating the company's investment policy, allowing Bitcoin as a held reserve asset. This decision came after GameStop's Chairman and CEO Ryan Cohen publicly took a photo with Michael Saylor on February 8th this year, without further exposing the details discussed during their meeting. As the photo was exposed on X, speculation arose about GameStop potentially adding BTC to its assets. Weeks later, Ryan Cohen replied to a CoinDesk reporter, stating he received an email from Strive Asset Management CEO Matt Cole, urging GameStop to adopt Bitcoin as a reserve asset.

GameStop noted in its announcement that its investment policy now allows investing in certain cryptocurrency assets, including Bitcoin and dollar-denominated stablecoins, while acknowledging related risks, such as potential impacts on financial performance and internal financial controls. Reports indicate GameStop currently holds $4.75 billion in cash, suggesting sufficient funds to purchase Bitcoin. It's worth noting that Bitcoin's current price is $87,803 USD, which can be used as a reference for the amount GameStop might last purchase as a reserve.

GameStop Exits Italy, Closes German Stores, Increases Net Income

In the fourth quarter, GameStop reported net sales of $1.283 billion, a decrease from $1.794 billion in the same period last year. Selling, general, and administrative expenses (SG&A) dropped to $282.5 million, compared to $359.2 million in the previous year. This quarter's net income was $131.3 million, higher than $63.1 million in the same period last year. Adjusted EBITDA for the quarter was $96.5 million, compared to $88 million in the previous year.

GameStop disclosed that cash, cash equivalents, and marketable securities at the end of the quarter were $4.775 billion. During this period, GameStop exited the Italian market and closed stores in Germany, indicating an intention to move funds out of European markets, save expenses, and focus entirely on the US domestic market.

GameStop's fiscal year 2024 net sales were $3.823 billion, lower than $5.273 billion in fiscal year 2023. Annual selling, general, and administrative expenses were $1.13 billion, compared to $1.324 billion in the previous year. Annual net income reached $131.3 million, significantly higher than $6.7 million reported in fiscal year 2023. Annual adjusted EBITDA was $36.1 million, compared to $64.7 million in the previous year.

GameStop has not yet disclosed plans for how much Bitcoin it will purchase or when it will begin acquiring BTC. CEO Ryan Cohen has not publicly commented on adding Bitcoin to GameStop's balance sheet. On the surface, GameStop is responding to Trump's "America First" victory, making America great again by exiting unprofitable businesses outside the US and focusing on the domestic market. It will be worth watching how much money GameStop will use to purchase Bitcoin, which might serve as an indicator for entry timing. Not investment advice, personal opinion for reference only.