GameStop (GME) stock is surging by double digits during Tuesday’s trading sessions following yesterday’s Bitcoin investment announcement. The gaming retailer announced its plans to add the Bitcoin cryptocurrency (BTC) as a treasury reserve asset. The company’s board unanimously approved the update to GameStop’s investment policy on Tuesday.

The stock was up modestly in pre-trading, but upon the opening bell, shares exploded. The move wasn’t a surprise since it had been the subject of recent speculation, with the company seeking new sources of growth.

“The Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stable coins…” GameStop announced yesterday. “The Company acquires Bitcoin or U.S. dollar-denominated stable coins, the Company will be exposed to certain risks associated with Bitcoin or stable coins, respectively.”

Also Read: Bitcoin: Here’s When BTC Could Reclaim $100,000

Since hitting a high of $64 per share in May 2024 amid a meme stock surge, GameStop shares have slumped. In the past month, however, GME stock has risen 17%, fueled by today’s surge. Interestingly, despite the GameStop (GME) climb, the cryptocurrency market had a reverse impact. Bitcoin is down nearly 2% in the last 24 hours,

GameStop’s announcement also came tied in with its Q4 earnings report. The company reported fourth-quarter earnings of 29 cents a share on net sales of $1.28 billion, compared with year-earlier profit of 21 cents a share on sales of $1.79 billion. The company reported a net income of $131.3 million, a jump from the $63.1 million figure from the same quarter last year. However, the earnings did fall below some analysts’ estimates, which could pump brakes on the GameStop Bitcoin investment train.

  • Gamestop
  • Stocks