GameStop Corp (NYSE:GME) shares are up 13% premarket on Wednesday after the company announced plans to invest in bitcoin.
The board unanimously approved an update to its investment policy, allowing the video game retailer to hold Bitcoin as a treasury reserve asset.
The move follows weeks of speculation after CEO Ryan Cohen shared a photo with MicroStrategy’s Michael Saylor, known for his company’s large Bitcoin holdings.
GameStop’s shift mirrors MicroStrategy’s crypto-focused strategy, though analysts remain sceptical of its potential upside.
Also on Tuesday, GameStop reported a 28% year-on-year drop in fourth-quarter sales to $1.28 billion. Full-year adjusted EBITDA fell to $36.1 million, down from $64.7 million the previous year. The company holds $4.6 billion in cash.
Ahead of the bell, the stock was indicated $3.38 higher at $28.78.