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Electronic gaming giant GameStop Corp. (NYSE: GME) has announced a significant shift in its investment strategy.
In a recent update, the American video game retailer informed the crypto community of its shift to Bitcoin as a treasury reserve asset.
Market data shows that this decision has significantly increased the company’s stock value amid bullish investor interest.
GameStop’s Stock Performance
Following the announcement, GameStop’s stock experienced a substantial rise.
As of this writing, the company stock was trading at $29.16, showing a 15% increase from the previous close.
Market data shows that the trading session saw the stock reach a high of $29.90 and a low of $27.40, with an opening price of $28.94.
The technology company also saw its shares record a daily trading volume of 29,531,772.
Last week, GameStop Corp reported a 28% year-over-year drop in fourth-quarter sales, bringing revenue down to $1.28 billion.
In addition, full-year adjusted EBITDA also fell to $36.1 million from $64.7 million the previous year.
Despite the revenue decline, reports show that GameStop still has $4.6 billion in cash, which allows it to explore new financial strategies.
Shortly after the announcement, Michael Saylor, the Chairman of Strategy, shared his thoughts on X, calling the move a step in the right direction.
Many crypto experts and influencers have also reacted, expressing optimism about GameStop’s decision.
Since the announcement, the post has gained nearly 2 million impressions on X.
Bitcoin Influence on Corporate Strategy
GameStop’s decision to integrate BTC into its treasury reserves follows a growing trend among organizations.
Many companies are now diversifying their portfolio with Bitcoin and other cryptocurrencies.
They consider it a hedge against inflation and a strategy to invest in assets other than Gold.
Per the GameStop update, the company’s board unanimously approved this policy update, allowing investments in Bitcoin and U.S. dollar-denominated stablecoins.
Still, this action follows CEO Ryan Cohen’s interactions with notable figures in the crypto sector, including a meeting with Strategy’s Michael Saylor earlier this year.
Meanwhile, the company has not specified the amount of Bitcoin it plans to acquire.
While GameStop, known as the biggest and favorite stock for short sellers, is showing its confidence in Bitcoin’s long-term value.
How much of its reserves will be allocated to the digital asset remains unclear.
Since the year started, big and small corporations have also been increasing their Bitcoin holdings.
Strategy, despite being a primary business intelligence and software firm recently acquired an additional 6,911 BTC for $584 million. This latest purchase brought its total holdings to over 506,000 BTC.
Similarly, Metaplanet, a Japanese financial firm and publicly listed company, announced the purchase of an additional 150 BTC, extending its total reserves to 3,350 BTC.
This acquisition agrees with the broader strategy of institutional investors’ accumulation of Bitcoin as a primary treasury asset.
In related news, Arthur Hayes, BitMEX co-founder and top analyst, recently predicted that Bitcoin could reach $110,000 soon.
In his X post, he said this is boosted by the U.S. Federal Reserve’s shift to quantitative easing.
Yet, he warns of a potential drop to test $76,500 support. At the time of writing, Bitcoin price was trading near $87K, down 0.57% in 24 hours.
