Gamestop shares increases 15% prior to the market, since the Bitcoins reserve plan pursues

Gamestop (GME) shares increased more than 15% in trade prior to the market today after the video game retailer confirmed the plans to add bitcoin as a treasure reserve asset, according to Yahoo Finance data.

The company's shares rose to $ 29.6 in operations prior to the market, after Tuesday's closure at $ 25.4. Despite an increase of approximately 68% in Gamestop's shares during the last year, the so -called Memes shares have still dropped almost 19% so far this year.

Gamestop, the 2021 short compression icon, on Tuesday joined the strategy, Tesla, and a growing list of public companies to stack bitcoin in its balance.

The company's board of directors unanimously approved the bitcoin strategy, which was revealed during its launch of the fourth quarter.

Gamestop can use existing cash or existing future capital offers to invest in bitcoin, although specific purchase amounts remain without revealing.

The announcement occurs together with improved quarterly yield, with Gamestop informing about $ 131 million in net income for the fourth quarter, compared to $ 63 million in the same period last year.

The retailer had about $ 4.6 billion in cash at the end of the third quarter of 2024, according to his dissemination to the SEC.

bitcoin's decision follows a February CNBC report that revealed that Gamestop was exploring investments in bitcoin and other cryptography assets.

The report occurred a few days after the company's CEO, Ryan Cohen, met with bitcoin's lawyer Michael Saylor, executive president of the strategy. Saylor, however, did not participate in the company's internal cryptography discussions.

Later that month, Matt Cole, CEO of Stive Asset Management, co -founded by Vivek Ramasswamy, sent a letter to the Gamestop CEO, Ryan Cohen, who proposed that the company use its cash reserves to invest in bitcoin.

In his statement, Cole said that Gamestop could become “the main bitcoin Treasury company in the game industry.”

Gamestop previously explored digital assets through a nft market launched in July 2022, but reduced the initiative in early 2024 by citing “regulatory uncertainty.” The company also discontinued its cryptographic wallet service at the end of 2023.

The company has faced challenges of increasing digital games. This strategic pivot could help stabilize the central business in Gamestop decline and presents the opportunity to improve its financial position in the competitive market.

Since Donald Trump's electoral victory in November 2024, a growing number of corporations has begun to convert its cash reserves to bitcoin. The trend is driven by Trump's Pro-crypto agenda and the commitment of its administration to promote a more favorable regulatory environment for digital assets.