GameStop (NYSE:GME) just threw another curveballand investors are eating it up. Shares jumped nearly 15% at 12.05pm today, after the company announced it’s adding bitcoin to its treasury reserve strategy, echoing moves by firms like Strategy (NASDAQ:MSTR). The crypto pivot comes as GameStop shutters more physical storesover 1,000 closures globally in the past yearwith more expected soon. A photo of CEO Ryan Cohen and Strategy chairman Michael Saylor recently made the rounds online, sparking fresh buzz. Retail investors are back on board, at the time of writing, GameStop was already the seventh most-traded stock among U.S. retail players.
Behind the scenes, GameStop’s core business is still under pressure. Quarterly sales plunged nearly 30% to $1.28 billion, but deep cost-cutting helped the company more than double net income to $131.3 million. It’s clear the business is pivoting away from traditional retailand fast. Analysts are split: some say this is a last-ditch effort to stay relevant, others see it as a smart play to keep the meme stock energy alive. Either way, the company is taking bold steps to stay on the radar, betting that a splash in crypto can help offset its declining footprint.
But is it enough? Bitcoin’s (BTC-USD) hovering around $88,000down nearly 20% from its January peakand analysts warn that tying GameStop’s fate to such a volatile asset could fuel more swings ahead. GameStop’s latest move fits a broader pattern: companies leaning into big headlines to stay relevant. Whether this turns out to be a turning point or another meme-fueled rally, one thing’s for sureGameStop’s not fading quietly.
This article first appeared on GuruFocus.
