GameStop's crypto pivot boosts shares of one-time retail investor favorite

Reuters

Wed, Mar 26, 2025, 4:56 AM 2 min read

(Reuters) - GameStop jumped connected Wednesday arsenic the shares that were erstwhile astatine the halfway of "meme stock" trading frenzy caught capitalist attraction again with the video crippled retailer making its determination into cryptocurrencies.

The company's shares roseate 12% earlier the doorbell aft GameStop said it would put successful bitcoin, with its superior brick-and-mortar retail concern struggling to gully customers amid the prevalence of integer downloads and e-commerce.

GameStop's update to its concern argumentation connected Tuesday to adhd bitcoin arsenic a treasury reserve plus mirrors speech relation Strategy, formerly known arsenic MicroStrategy.

Strategy is the largest firm holder of bitcoin and its shares are often seen arsenic a proxy for the integer currency fixed its elevated exposure.

GameStop's alteration successful concern strategy comes amid U.S. President Donald Trump's accrued absorption connected integer assets, which has boosted involvement successful cryptocurrencies.

"Retail operations aren't the crushed wherefore GameStop's shares are flying – they ne'er are. This clip it's astir the company's determination into bitcoin," said Dan Coatsworth, concern expert astatine AJ Bell.

The company's shares could spot accrued volatility by being tied to the integer currency, according to Capital.com expert Daniela Hathorn.

More than 2 months aft hitting a six-figure all-time high, bitcoin is present trading astatine astir $88,000, down astir a 5th from its January peak.

GameStop's assertive outgo cuts helped the institution much than treble its nett income to $131.3 cardinal successful the 4th quarter.

The company, which has closed hundreds of stores successful a pivot to e-commerce nether CEO Ryan Cohen, reported fourth-quarter nett income that fell astir 30% to $1.28 billion.

(Reporting by Arsheeya Bajwa successful Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Shounak Dasgupta)