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GameStop has made a bold move by investing over $500 million in Bitcoin as part of its new treasury strategy, signaling a major shift as the company faces declining revenue and a rapidly evolving gaming industry.
Bitcoin Becomes Part of GameStop’s Treasury Reserve Strategy
Between May 3 and June 10, 2025, GameStop acquired 4,710 Bitcoin, valued at approximately $516.6 million. This investment, revealed alongside its Q1 2025 financial results, marks a significant step in the company’s broader strategy to diversify its reserves with digital assets.
In the first quarter of 2025, GameStop reported earnings per share (EPS) of $0.09, beating analyst expectations of $0.04. However, revenue fell short at $732.4 million, compared to Wall Street’s forecast of $754.2 million.
Despite the revenue miss, the company showed improved operational efficiency: operating margin rose from -5.7% to -1.5% year-over-year, and free cash flow turned positive at $189.6 million, compared to a negative $114.7 million last year.
Still, GameStop continues to face significant challenges from the rise of digital gaming and streaming platforms, pushing it to explore alternative revenue sources.
Bitcoin as a Hedge and Treasury Asset
The substantial Bitcoin purchase aligns with a new investment policy approved by GameStop’s board earlier this year, officially designating Bitcoin as a treasury reserve asset. The company follows in the footsteps of other firms like MicroStrategy that have turned to Bitcoin to hedge against inflation and economic uncertainty.
GameStop’s move signals a shift in how it manages excess cash—focusing on risk assets such as cryptocurrencies and equities as part of a long-term financial strategy.
Simultaneously, Bitwise Asset Management launched the Bitwise GME Option Income Strategy ETF (IGME)—the first ETF to capitalize on GameStop’s Bitcoin-focused strategy. This ETF aims to generate income through covered call strategies tied to GameStop’s stock volatility while offering upside potential from its crypto holdings.
“IGME reflects the growing retail investor interest in GameStop as a crypto play,” said Jeff Park, Head of Alpha Strategies at Bitwise. “It gives investors access to an equity that combines brand recognition, fundamental earnings, and digital asset exposure.”
Market Reaction to Earnings and Strategic Moves
Despite reporting its fourth consecutive quarterly profit, GameStop’s shares fell over 4% in after-hours trading on June 10, 2025, largely due to the revenue shortfall. Although the stock is up 33% over the past three months, investors remain cautious about the company’s long-term growth outlook.
With the gaming landscape shifting rapidly, GameStop’s aggressive entry into Bitcoin reflects a strategic gamble to reignite growth and reposition itself in a digital-first economy.
