Finance

GameStop is considering investing in bitcoin and other cryptocurrencies, sources say

Published

7 days ago

February 13, 2025

Business Finance News

A general view of the GameStop logo on one of its stores in the city center of Cologne, Germany.

Ying Tang | Nurphoto | Getty Images

Video game retailer turned meme stock GameStop is considering investing in bitcoin and other cryptocurrencies, according to sources familiar with the matter.

GameStop is exploring investments in alternative asset classes, including crypto and in particular bitcoin, three sources said. Shares of GameStop soared as much as 20% in extended trading following the news.

The retailer could decide not to follow through with the investments. The company is still in the process of figuring out if this made sense for GameStop’s business, according to one source.

Last weekend, CEO Ryan Cohen posted a photo on X with Michael Saylor, co-founder and chairman of MicroStrategy, the largest corporate holder of bitcoin. However, Saylor isn’t involved in GameStop’s discussion about crypto investments at this time, two of the sources said.

In 2022, GameStop launched crypto wallets that let users manage their crypto and nonfungible tokens. However, the firm shut the service down in 2023, citing “regulatory uncertainty.”

Cohen, co-founder of Chewy, bought shares in GameStop in 2020 and joined the board in 2021 as GameStop became one of the key meme stocks in the trading mania. His e-commerce experience fueled hopes that he could help modernize the brick-and-mortar retailer, but the company still is still struggling to adapt to changing spending habits by gamers.

Under Cohen’s leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable even though it isn’t growing. As of Nov. 2, the company had amassed a $4.6 billion cash pile and has been using those funds for investments, according to a December securities filing.

Companies considering adding bitcoin to their balance sheet would be following in the footsteps of MicroStrategy. That company, recently rebranded to Strategy, has bought billions of dollars worth of bitcoin in recent years, effectively transforming from a software stock to a bitcoin holding vehicle.

The decision has helped fuel a rapid, if volatile, rise for Strategy’s stock.

In Dec. 2023, GameStop’s board approved a new “investment policy.” It allows Cohen, plus two independent board members and other necessary staff, to manage GameStop’s portfolio of securities investments. Those investments have to conform to the policy’s guidelines, or be approved by the committee by unanimous vote or the full board by majority vote.

Finance

PLTR, APP, SHAK, WMT and more

Published

51 minutes ago

February 20, 2025

Business Finance News

Finance

Treasury sets new deadline for businesses to report ownership information

Published

3 hours ago

February 20, 2025

Business Finance News

Former U.S. Treasury Secretary Janet Yellen speaks to staff at the Financial Crimes Enforcement Network on Jan. 8, 2024 in Vienna, Virginia.

Samuel Corum | Getty Images News | Getty Images

The Treasury Department has set a new deadline of March 21 for millions of businesses to fulfill a new reporting requirement on “beneficial ownership information,” after a court order allowed the federal agency to start enforcing the measure.

The Corporate Transparency Act, which Congress enacted in 2021, requires small businesses to disclose the identity of people who directly or indirectly own or control the company. The measure aims to prevent criminals from hiding illicit activity conducted through shell companies or opaque ownership structures, according to the Treasury.

Businesses have suffered a degree of whiplash from the on-again-off-again deadlines to file BOI reports. A string of court orders had prevented the Treasury from enforcing the measure, only to then see courts strike down those rulings.

The U.S. District Court for the Eastern District of Texas on Feb. 18 lifted a nationwide injunction that had prevented the Financial Crimes Enforcement Network, known as FinCEN, which is part of the Treasury, from enforcing the Corporate Transparency Act.

Room for more delays?

The BOI reporting measure applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates.

Businesses and owners that don’t comply with reporting rules are potentially subject to civil penalties of up to $591 a day, adjusted for inflation. They could also face up to $10,000 in criminal fines and up to two years in prison.

Small business optimism lower in Q1 2025, survey finds

FinCEN left the possibility of further delays on the table even as it extended its previous reporting deadline by 30 days.

“FinCEN will provide an update before then of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided,” according to a Feb. 18 FinCEN notice.

FinCEN also said it would prioritize enforcement for businesses that “pose the most significant national security risks.”