- GameStop surged 12% after-hours as it announced plans to invest cash and future debt into Bitcoin.
- Despite a 28% revenue drop in Q4, investor enthusiasm remained strong due to GameStop’s bold crypto strategy shift.
GameStop made a bold turn Tuesday, jumping 12% in after-hours trading. The surprise rally came after the company said it would start pouring its cash and even future debt into Bitcoin. Investors reacted swiftly, signaling new faith in a company that’s long struggled with declining game sales and a tough retail environment.
Even with the crypto buzz, the company’s financials tell a tougher story. Revenue in the fourth quarter dropped 28%, pulling in just $1.28 billion compared to the same stretch in 2023. That shortfall didn’t seem to rattle enthusiasm for the news. Just last month, GameStop had already surged 10% after whispers from CNBC suggested a crypto move was on the table.
The company confirmed it’s not setting a limit on how much Bitcoin it plans to accumulate. The company wrote in its official Form 10-K filing:
We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire.
Crypto Rush Signals Bigger Shifts for Retail
This move positions GameStop alongside a growing list of big names turning to Bitcoin as part of their financial strategy. Tesla, Block, Riot Platforms, and Coinbase have already entered the scene, and now, GameStop is staking its future on the same volatile asset.
There’s a belief among some investors that owning shares in companies holding Bitcoin is a safer bet than jumping into crypto markets themselves. With bitcoin rising 24% in the past year—thanks in part to a pro-crypto stance from the U.S. government—companies like GameStop are eyeing opportunity in the middle of risk.
Notably, the company made no promises to hold long-term. Flexibility seems to be the name of the game. While the timing aligns with a recent executive order signed by Donald Trump to create a national cryptocurrency reserve, GameStop’s statement highlighted caution.
The Bitcoin markets have historically experienced significant volatility in price, limited liquidity and trading volumes, relative anonymity, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges and other risks inherent in its entirely electronic, virtual form and decentralized network,
Familiar Faces and Flashbacks to 2021
The crypto pivot echoes moves by Strategy, a software company that’s been stacking Bitcoin since October. Just last week, it added another $10.7 million to its already massive $41.6 billion Bitcoin holdings. GameStop CEO Ryan Cohen hinted at the company’s Bitcoin ambitions earlier this year when he posted a photo of himself with Strategy cofounder Michael Saylor on X.
— Ryan Cohen (@ryancohen) February 8, 2025
While the crypto gamble dominates headlines now, GameStop still faces long-term challenges. Physical game sales are fading fast as the industry pushes digital downloads and cloud gaming. The company is navigating a sharp shift in how players consume content, one that’s hurt its traditional retail base.
Back in January 2021, the stock became a symbol of rebellion. An army of retail investors using Robinhood pushed GameStop shares sky-high—over 2,200% in five years. But that meteoric rise has cooled. So far, in 2025, the stock is down 19%.
