GameStop (NYSE:GME) shares soared 14% intra-day today as the company unveiled plans to add Bitcoin to its treasury holdings and posted a significant jump in quarterly profit, despite declining revenue and continued store closures.
The retailer’s board approved a strategy to allocate a portion of its cash and future capital—whether from debt or equity—into Bitcoin, although no upper limit was disclosed for the potential investment. The move marks a bold pivot as GameStop seeks to diversify its balance sheet while reshaping its business in a tough retail environment.
GameStop has been aggressively trimming its store footprint, having closed 590 U.S. locations during fiscal 2024, with more closures planned in 2025. The company also completed its exit from the Italian market and downsized operations in Germany.
For the fourth quarter, net income more than doubled to $131.3 million, up from $63.1 million a year earlier, driven largely by cost-cutting efforts. SG&A expenses dropped to $282.5 million, down from $359.2 million, reflecting tighter operational discipline.
However, revenue continued to decline, falling to $1.28 billion from $1.79 billion in the same quarter last year, mirroring broader industry trends toward digital game downloads and streaming. For the full year, net sales fell to $3.82 billion, down from $5.27 billion in fiscal 2023.