GameStop plans to close a significant number of stores and invest in Bitcoin as a reserve asset for the Treasury.
Gamestop Corp. has closed a “slight number” of stores and started investing in Bitcoin, which was released in its annual report filed with the Securities and Exchange Commission (SEC) on March 25th.
GameStop had 3,203 stores worldwide as of that date. This included 2,325 stores in the US, 193 in Canada, 374 in Australia and 311 in Europe.
“On March 25th, 2025, as part of the revision of its investment policy, the Board announced that it had approved the addition of Bitcoin as a reserve asset for the Ministry of Finance.
The company said it could accumulate the largest amount of Bitcoin and sell the bitcoin it acquires.
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The board has established an investment committee with CEO and chairman Ryan Cohen and two independent board members to oversee the strategy. The committee is permitted to allocate funds to cryptocurrencies, public equities, fixed income securities and other permitted assets.
GameStop’s Bitcoin transition occurs amid a wider effort to “maximise shareholder value” by leveraging substantial cash reserves and streamlining the retail footprint.
The company ended fiscal year 2024 with $4.775 billion in cash, cash equivalents and marketable securities, starting from $1.199 billion the previous year.
The financial update, released on March 25, also showed that net profit for the fourth quarter more than doubled, increasing from $63.1 million the previous year to $131.3 million.
However, annual net sales fell to $3.823 billion from $5.273 billion in fiscal year 2023, reflecting the impact of global sales and store closures. The company completed a blow-up of its business in Germany and sold its business in Italy during the year.
The company also warned that ongoing changes in duties and import regulations could raise costs and affect product availability, particularly as many of its products are sourced internationally. It says trade tensions and new obligations could have a negative impact on the financial situation.
GameStop’s announcement coincides with a broader trend among national retailers closing stores amid changing market conditions.
Similarly, Cole intends to shutter 27 defective stores by April 2025 to increase profitability. Joan, a fabric and craft retailer, has also announced plans to close around 500 stores across the US amid bankruptcy proceedings.
These developments reflect major changes in the retail industry as businesses adapt to evolving consumer behavior and economic pressures.
Gamestop said it will continue to focus on profitability and market expansion through the provision of new products and services, particularly in higher margin categories such as collectibles.
The company, like most companies’ habits, did not hold conference calls after the revenue release. Additional details are now available in SEC filing.
The Associated Press contributed to this report.
