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GameStop Cash Reserves surged five times to $4.777 billion in 2024, accompanied by $1.283 billion in fourth quarter net sales. Analysts speculates that, combined with Gamestop’s improved finances, the Bitcoin strategy could drive inventory towards its 2021 highs.
GameStop stock witnessed rapid profits in after-hours trading on Tuesday after announcing plans to build its own Bitcoin reserve. This will allow American video game companies to enter League of Strategy (formerly Micro Strategy), Metaplanet, Semler Scientific, Tesla and others to bring BTC to the balance sheet.
Market analysts have speculated whether these BTC plans could cause yet another frenzy in the GME Stock Rally. Gamestop stocks have already risen 63% last year, trading at $27.50 after turning back from key support at $11. If the market kicks off again, it could potentially shoot all the way to its 2021 high of $81.
How much will GameStop expand from $4.8 billion cash pile to Bitcoin?
According to a CNBC report on Tuesday, GameStop plans to invest a portion of its $4.8 billion in corporate cash in Stablecoins, which has won Bitcoin and US dollars. Additionally, the company’s financial statements include:
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The company also announced fourth quarter revenues, showing a five-fold rise in cash piles over the past year. As of February 1, Gamestop’s cash reserve totaled over $4.777 billion, a significant increase from the previous year’s $921.7 million. The video game retailer reported net sales of $1.283 billion in the fourth quarter and $3.823 billion in 2024.
These factors also play an important role in driving Gamestop stocks higher from here, in addition to the company’s Bitcoin plan, which serves as a catalyst.
Continuing in Michael Saylor’s Bitcoin Playbook
Speculations about GameStop’s potential interest in Bitcoin surfaced in February, causing an increase in GME stocks. In addition to Buzz, GameStop CEO Ryan Cohen shared photos on social media featuring herself alongside strategy executive chairman and prominent Bitcoin advocate Michael Saylor, raising expectations for Bitcoin acquisition.
— Ryan Cohen (@ryancohen) February 8, 2025
Now, almost 40 days later, the company is revealing its Bitcoin acquisition plan by following Strategy’s BTC playbook. Earlier this week, Michael Saylor revealed that the strategy had purchased an additional 6,911 Bitcoins and increased its total holding to 506,137 BTC. This positions the company as the owner of approximately 2.4% of the total Bitcoin supply.
Companies such as Metaplanet and Strategy have been bringing multifaceted benefits to shareholders for several years following their BTC purchase plans. GameStop stocks were able to see similar moves over the next year.
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Bhushan is a fintech enthusiast and has a good talent for understanding financial markets. His interest in economy and finance has attracted attention to new emerging blockchain technologies and cryptocurrency markets. He is constantly involved in the learning process and continues to motivate him by sharing the knowledge he has acquired. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
X’s Bhushan Akolkar
