Empire State Review Team 
GameStop Announces Store Closures and Bitcoin Investment Plans
GRAPEVINE, Texas – The well-known video game retailer GameStop revealed plans this week to close a significant number of its retail locations by 2025, coinciding with an announcement of its intention to invest in Bitcoin.
Details on Store Closures and Investment Strategy
In a recent regulatory filing, GameStop disclosed its forecast for store closures within the upcoming year. Concurrently, the company has revised its investment policy to incorporate Bitcoin as a treasury reserve asset.
Key Points from GameStop’s Announcement
- Store Closures: GameStop is expecting to shut down a substantial number of stores, although specific locations have not yet been identified.
- Investment Policy Changes: The company has confirmed that a portion of its cash, or future debt and equity issuances, may be allocated towards Bitcoin investments.
- Corporate Goals: GameStop aims to maintain sufficient liquidity to meet day-to-day operational needs while optimizing investment returns, as stated in their SEC filing.
Board Decision and Context
The update to the investment policy was unanimously agreed upon by the company’s board members, which includes CEO Ryan Cohen. This strategic shift follows indications from last month that GameStop was contemplating entering the cryptocurrency market in pursuit of improving its profitability amidst challenging retail conditions.
GameStop’s Financial Performance
Despite a 28.5% decline in net sales compared to the previous year, GameStop reported $1.28 billion in net sales during the last quarter of its fiscal year. However, their net income increased to $131.1 million. Over the entire fiscal year, the retailer noted total net sales of $3.82 billion with a similar net income of approximately $131.3 million.
Current Bitcoin Market Status
As of Wednesday morning, the price of Bitcoin stood at just above $87,000, making it a notable component in the evolving landscape of corporate investments.
Sources and Further Information
The information provided is based on disclosures made by GameStop in their SEC filing, along with statements from public press releases. The coverage was reported from Cincinnati, with contributions from FOX Business.
