Video game retailer GameStop announced Tuesday its board has unanimously approved a plan to buy bitcoin with its corporate cash, a move that MicroStrategy became well-known for.
The meme stock jumped more than 6% in extended trading following the news. The announcement confirmed CNBC’s reporting in February on GameStop’s intention to add bitcoin and other cryptocurrencies to its balance sheet.
The retailer said a portion of its cash or future debt and equity issuances may be invested in bitcoin and U.S. dollar-denominated stablecoins. As of February 1, GameStop held nearly $4.8 billion in cash. The firm also said it hasn’t set a ceiling for the amount of bitcoin it may purchase.
GameStop would be following in the footsteps of software company MicroStrategy, now known as Strategy, which has bought billions of dollars worth of bitcoin in recent years to become the largest corporate holder of bitcoin. The move prompted a rapid, but volatile, rise for Strategy’s stock.
GameStop’s foray into cryptocurrencies marks the latest effort from CEO Ryan Cohen to revive the struggling brick-and-mortar business. Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable.
Investors also cheered a rise in GameStop’s fourth-quarter results. The firm reported net income of $131.3 million, a jump from the $63.1 million figure from the same quarter last year.
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