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Investing.com -- GameStop shares have jumped 14% in premarket trading on Wednesday after the company announced it would add Bitcoin to its treasury reserve assets alongside reporting a sharp rise in quarterly profit.
The company said its board unanimously approved the move to invest a portion of its cash, future debt, or equity issuances in Bitcoin, though it has not set a maximum amount it may acquire.
The shift comes as GameStop (NYSE:GME) continues cost-cutting measures while navigating a challenging retail environment. The company closed 590 stores in the U.S. during fiscal 2024 and expects to shutter more in 2025.
For the fourth quarter, GameStop reported net income of $131.3 million, more than doubling from $63.1 million a year earlier.
Revenue fell to $1.28 billion, down from $1.79 billion in the prior-year period. Selling, general, and administrative (SG&A) expenses declined to $282.5 million from $359.2 million.
GameStop ended the quarter with $4.78 billion in cash, equivalents, and marketable securities and noted the completion of its exit from the Italian market and store closures in Germany.
For fiscal year 2024, net sales fell to $3.82 billion from $5.27 billion, reflecting ongoing shifts in the gaming industry toward digital downloads and streaming.
Despite this, the company posted full-year net income of $131.3 million, compared to just $6.7 million in 2023.