GameStop said it anticipates closing a “significant number” of additional stores this fiscal year and revised its investment policy, paving the way for the video game retailer to invest in bitcoin.
The company on Tuesday announced the revision of its investment policy to include bitcoin “as a treasury reserve asset.”
GameStop said a “portion of our cash or future debt and equity issuances may be invested in Bitcoin” now that its investment policy has been changed, according to a Securities and Exchange Commission (SEC) filing.
“We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire,” GameStop said.
The update to its investment policy was a unanimous decision by its board, which includes CEO Ryan Cohen and five others.
“The overall goals of the Investment Policy are to provide sufficient liquidity to meet the day-to-day financial obligations of the Company, and to optimize investment returns within the guidelines of the Investment Policy,” GameStop said.
Shares of GameStop climbed on the news.
TRUMP CREATES STRATEGIC BITCOIN RESERVE, OTHER CRYPTOCURRENCIES TO BE USED IN STOCKPILE
GameStop generated $1.28 billion in net sales during the final quarter of its fiscal year, marking a 28.5% decline year-over-year. Its net income, however, grew to $131.1 million.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 28.39 | +2.96 | +11.62% |
For the fiscal year, the retailer said it saw $3.82 billion in net sales and $131.3 million in net income.
The price of bitcoin, meanwhile, hovered just above $87,000 as of Wednesday morning.
The investment policy update comes after reports last month suggested GameStop was mulling an entry into cryptocurrency.
The company has been working to boost the profitability of its retail business. It operated some 3,200 stores globally at the end of the fourth quarter, nearly 970 fewer than it did a year ago.
GameStop announced in a regulatory filing on Tuesday that it anticipates closing a “significant number” of stores this year. It has not yet determined which stores in particular will shutter.
Its stores sell video game consoles, software, collectibles and other products.
