GameStop’s Board Approves Bitcoin Purchases

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GameStop announced on Tuesday that its board has unanimously approved a plan to purchase Bitcoin using its corporate cash, following a strategy made popular by MicroStrategy.

The company stated that it may invest a portion of its cash or future debt and equity issuances in Bitcoin and US dollar-denominated stablecoins. As of February 1, GameStop had nearly $4.8 billion in cash and has not set a limit on the amount of Bitcoin it may acquire.

By venturing into cryptocurrencies, GameStop follows in the footsteps of MicroStrategy, which has bought billions in Bitcoin to become the largest corporate holder. This move led to a rapid, albeit volatile, increase in MicroStrategy’s stock.