GameStop shares jump on BTC addition, results

Investing.com -- GameStop shares have jumped 14% in premarket trading on Wednesday after the company announced it would add Bitcoin to its treasury reserve assets alongside reporting a sharp rise in quarterly profit.

The company said its board unanimously approved the move to invest a portion of its cash, future debt, or equity issuances in Bitcoin, though it has not set a maximum amount it may acquire. 

The shift comes as GameStop (NYSE:GME) continues cost-cutting measures while navigating a challenging retail environment. The company closed 590 stores in the U.S. during fiscal 2024 and expects to shutter more in 2025.

For the fourth quarter, GameStop reported net income of $131.3 million, more than doubling from $63.1 million a year earlier. 

Revenue fell to $1.28 billion, down from $1.79 billion in the prior-year period. Selling, general, and administrative (SG&A) expenses declined to $282.5 million from $359.2 million.

GameStop ended the quarter with $4.78 billion in cash, equivalents, and marketable securities and noted the completion of its exit from the Italian market and store closures in Germany.

For fiscal year 2024, net sales fell to $3.82 billion from $5.27 billion, reflecting ongoing shifts in the gaming industry toward digital downloads and streaming. 

Despite this, the company posted full-year net income of $131.3 million, compared to just $6.7 million in 2023.

 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.GME: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if GME is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

Unlock ProPicks AI now