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In a move that has sent ripples through both the financial and %Cryptocurrency worlds, %GameStop (NYSE: $GME ), the video game retailer synonymous with the 2021 meme stock frenzy, has embarked on a groundbreaking strategy to incorporate %Bitcoin (CRYPTO: $BTC ) into its corporate treasury. As of March 25, 2025, the company’s board has unanimously approved a plan to allocate a portion of its substantial cash reserves—nearly $4.8 billion as of February 1, 2025—to Bitcoin and U.S. dollar-denominated %Stablecoins. This decision marks a significant shift for GameStop, aligning it with a growing trend of corporations seeking to diversify their balance sheets with digital assets, most notably pioneered by %Strategy (NASDAQ: $MSTR ). Under the leadership of CEO Ryan Cohen, GameStop’s Bitcoin strategy could redefine its future, potentially transforming it from a struggling brick-and-mortar retailer into a player in the burgeoning crypto economy.

The Genesis of the Strategy

GameStop’s journey toward Bitcoin began gaining traction in early 2025, fueled by speculation and strategic hints from its leadership. The retailer, which has faced declining sales in its traditional business due to the rise of digital game downloads, has been sitting on a massive cash pile—amassed through equity offerings and cost-cutting measures. By November 2024, this reserve stood at $4.6 billion, growing to $4.8 billion by February 2025. This financial cushion provided Cohen and his team with the flexibility to explore unconventional avenues for growth.

Rumors of a Bitcoin strategy first surfaced in February 2025 when Cohen posted a photo on X alongside Michael Saylor, the co-founder of Strategy and a vocal Bitcoin advocate. Saylor’s company has famously accumulated over 478,000 BTC, making it the largest corporate holder of the cryptocurrency. The image sparked immediate speculation among investors and crypto enthusiasts, with GameStop’s stock surging nearly 10% in the days that followed. Adding fuel to the fire, Strive Asset Management, co-founded by Vivek Ramaswamy, sent a letter to Cohen on February 24, urging GameStop to adopt Bitcoin as a treasury asset. Strive’s CEO, Matt Cole, argued that with its cash reserves, GameStop could “shift from a shrinking asset to a growth engine,” potentially elevating it from a meme stock to a gaming-sector leader.

By March 25, 2025, the speculation became reality. GameStop updated its investment policy, explicitly allowing the use of cash, future debt, or equity issuances to purchase Bitcoin. Unlike Strategy, which has leveraged billions in debt to amass its Bitcoin holdings, GameStop has not set a ceiling on its potential purchases, leaving room for flexibility—and volatility—in its approach.

Why Bitcoin?

GameStop’s decision to embrace Bitcoin comes at a time when the cryptocurrency is experiencing both heightened mainstream acceptance and significant price fluctuations. Following Donald Trump’s reelection in November 2024, Bitcoin soared past $100,000, buoyed by a pro-crypto political climate. However, by March 2025, it had retreated to around $88,000, reflecting its characteristic volatility. For GameStop, this presents both an opportunity and a risk.

The rationale behind the strategy mirrors that of Strategy: Bitcoin is increasingly viewed as “digital sound money,” a hedge against inflation and fiat currency devaluation. With $4.8 billion in cash, GameStop could acquire over 54,000 BTC at current prices—a substantial stake that could position it as a significant corporate player in the crypto space. Proponents, including voices from X, argue that even a conservative allocation—say, a quarter of its cash—could catalyze a stock price surge, reminiscent of Strategy’s volatile but rewarding ascent.

Cohen’s leadership has focused on profitability through operational streamlining, evidenced by a fourth-quarter net income of $131.3 million in 2025, more than double the $63.1 million from the prior year. Yet, the core retail business remains challenged. By diversifying into Bitcoin, GameStop aims to leverage its capital in a way that transcends its declining physical footprint, potentially unlocking long-term shareholder value.

Risks and Rewards

The Bitcoin strategy is not without its detractors. In its SEC filing, GameStop acknowledged the inherent risks: “Bitcoin is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful.” Critics, including economist Peter Schiff, have labeled it a desperate move by a company with “no viable business plan,” warning that Bitcoin’s overvaluation could mirror GameStop’s own speculative bubbles.

The retailer’s past flirtation with crypto—launching NFT wallets in 2022 only to shutter them in 2023 due to regulatory uncertainty—adds a layer of caution. However, the shifting regulatory landscape under a Trump administration, including an executive order to establish a U.S. crypto reserve, may have emboldened GameStop to reenter the space. Still, financial overexposure, cybersecurity threats, and a potential distraction from its gaming roots pose tangible risks.

On the reward side, the strategy could redefine GameStop’s identity. Strive’s Cole suggested leveraging capital markets through at-the-market offerings and convertible debt to amplify Bitcoin purchases, a tactic that could fuel a short squeeze akin to 2021’s meme stock mania. If Bitcoin’s value climbs, GameStop could see its stock—already a darling of retail traders—skyrocket, drawing parallels to Strategy’s transformation into a Bitcoin proxy.

A Meme Stock’s Metamorphosis?

GameStop’s Bitcoin strategy is a high-stakes gamble that blends its meme stock legacy with a forward-looking financial pivot. For a company once seen as a relic of the pre-digital era, this move signals an ambition to adapt to a changing economic landscape. Whether it becomes a cautionary tale of overreach or a visionary leap into the future of corporate finance remains to be seen.

As of March 25, 2025, the market has responded positively, with investors cheering both the crypto announcement and the company’s robust Q4 earnings. Yet, the true test lies ahead: execution will be key. If successful, GameStop could shed its meme stock label and emerge as a pioneer in the gaming sector’s embrace of cryptocurrency. If it falters, it risks amplifying the volatility that has long defined its story. Either way, GameStop’s Bitcoin strategy has ensured that all eyes—on Wall Street and beyond—are once again fixed on the Grapevine, Texas-based retailer.