GameStop’s Bitcoin Bet: Is This the Next Big Mistake? 🤔💸

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So, GameStop, in a move that’s either genius or just plain desperate, has decided to invest in Bitcoin as a treasury reserve asset. This announcement came right after their Q4 2024 earnings report, which, let’s be honest, was about as uplifting as a funeral. 🙄

But hey, despite the doom and gloom of their financials, the Bitcoin news somehow managed to boost their stock value by around 6%. I mean, who knew a little crypto could work magic? Limited exposure to crypto is expected to strengthen their financial position in 2025. Or so they say. 🤷‍♂️

Will GameStop Follow MicroStrategy’s Bitcoin Plan?

GameStop, the American video game and electronics retailer, has dipped its toes into crypto and Web3 more times than I can count. After that Reddit-fueled stock squeeze in 2021, they’ve been all about exploring new financial ecosystems, even if they often end up in a mess.

In their latest press release, they proudly declared they’ll start buying Bitcoin:

“GameStop today announced that its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset,” the press release claimed. Wow, unanimous! That’s like a family agreeing on where to eat—rare and suspicious. 🍽️

Rumors about this Bitcoin investment have been swirling since last month. Their CEO, Ryan Cohen, was spotted with Michael Saylor, the guy who turned his company into a Bitcoin powerhouse. Coincidence? I think not! 🕵️‍♂️

People started speculating that Saylor’s moves could be a blueprint for GameStop. And guess what? They were right! Shocking, I know.

GameStop’s board decided to buy Bitcoin on the same day they released their Q4 2024 earnings report. And let me tell you, the results were about as exciting as watching paint dry. Their Q4 YoY net sales plummeted over half a billion dollars, and they sold nearly $1.5 billion less merchandise in 2024 than in 2023. Ouch! 😬

Sure, expenses were down and net income was up, but let’s not kid ourselves—these are serious losses.

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Given Bitcoin’s incremental annual growth rate, this gamble might just pay off for GameStop. Like MicroStrategy, a controlled Bitcoin exposure could help drive their annual revenue in a bullish market. Overall, they might just use Bitcoin to prop up their stock value while continuing their usual business operations. Or they could crash and burn. Either way, it’s going to be a wild ride! 🎢

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2025-03-26 01:46