GameStop Corp. will close a “significant number” of its stores and begin investing in bitcoin, the company announced in its annual report filed with the Securities and Exchange Commission (SEC) on March 25.
GameStop operated 3,203 stores globally as of that date, including 2,325 in the United States, 193 in Canada, 374 in Australia, and 311 in Europe.
“On March 25, 2025, we announced that, as part of our revisions to the Investment Policy, the Board approved the addition of Bitcoin as a treasury reserve asset, whereby a portion of our cash or future debt and equity issuances may be invested in Bitcoin,” the company said in the filing.
The company said it has not set a maximum amount of bitcoin it may accumulate and may sell any bitcoin it acquires.
Its board of directors has created an Investment Committee—comprising CEO and Chairman Ryan Cohen and two independent board members—to oversee the strategy. The committee is authorized to allocate funds to cryptocurrencies, public equities, fixed-income securities, and other permissible assets.
GameStop’s move into bitcoin comes amid its broader efforts to “maximize shareholder value” by leveraging its substantial cash reserves and streamlining its retail footprint.
The company ended fiscal 2024 with $4.775 billion in cash, cash equivalents, and marketable securities, up from $1.199 billion the previous year.
The financial update, also released on March 25, showed that net income for the fourth quarter more than doubled, to $131.3 million, up from $63.1 million the prior year.
Annual net sales, however, declined to $3.823 billion from $5.273 billion in fiscal 2023, reflecting the impact of global divestitures and store closures. The company completed the wind-down of its operations in Germany and divested its business in Italy during the year.
The company also warned that ongoing changes to tariffs and import regulations could raise costs and affect product availability, especially since many of its goods are sourced internationally. Trade tensions and new duties, it noted, may negatively impact its financial condition.
GameStop’s announcement aligns with a broader trend of national retailers closing stores amid changing market conditions.
Similarly, Kohl’s intends to shutter 27 underperforming stores by April 2025 to boost profitability. While fabric and crafts retailer Joann has also announced plans to close about 500 stores across the United States amid bankruptcy proceedings.
These developments reflect a significant shift in the retail landscape as companies adapt to evolving consumer behaviors and economic pressures.
GameStop said it continues to focus on profitability and expanding its market through new product and service offerings, particularly in higher-margin categories such as collectibles.
The company did not hold a conference call following the earnings release as is the custom of most businesses. Additional details were made available in its SEC filing.
