GameStop Confirms Plans to Invest in Bitcoin. The Stock Is Climbing.
GameStop has approved adding Bitcoin to its balance sheet, confirming speculation as the company explores new growth avenues.
3 min
Videogame seller and meme stock GameStop said its board approved adding Bitcoin as an investment.
The company announced its board unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset. In a filing, it said “a portion of our cash or future debt and equity issuances may be invested in Bitcoin” and that it had not set a maximum on the amount of Bitcoin it could accumulate or sell. The move had been the subject of recent speculation as GameStop seeks new sources of growth.
For the fourth quarter ended Feb. 1, GameStop reported net sales of $1.28 billion, below the $1.48 billion analysts surveyed by FactSet had expected.
Adjusted earnings of 29 cents a share beat the 8 cents a share analysts expected. Net income of $131.3 million was also above the $33 million expected.
Shares were up 6% in late trading, after closing down 0.8% on Tuesday, at $25.80. Shares traded as low as $24.99 intraday, down 2.4%, the largest intraday percentage decline since March 12, according to Dow Jones Market Data.
Analysts and investors have been more interested in updates on the company’s strategic direction than its earnings results, as GameStop faces questions about the profitability of its core business. It has been closing physical stores and expanding beyond videogames amid the continuing shift to digital gaming.
The company said it completed its divestiture in Italy and the wind-down of store operations in Germany.
For the full fiscal year ended Feb. 1, GameStop reported net sales of $3.82 billion, below the $4.02 billion expected.
Net income of $131.3 million and earnings of 33 cents a share both beat analysts’ expectations.
GameStop stock has risen 64% over the past 12 months, in part because of the return of investor Keith Gill, also known as “Roaring Kitty,” who said in a YouTube livestream in June 2024 that he is still a “ believer ” in GameStop. The shares are down 19% this year through Tuesday’s close.
“Roaring Kitty’s” social media posts helped fuel the meme stock frenzy in early 2021, pushing GameStop’s stock to its record high of $86.88 on Jan. 27, 2021.
Michael Pachter, a managing director at Wedbush Securities and former CEO of Take-Two Interactive Software who specializes in the videogame sector, said the company’s recent moves into trading cards was unlikely to be the catalyst that would turn around the core business.
“It is unfathomable that they will ever turn their core business (selling games) around by offering trading cards in their stores,” he told Barron’s in an email. When GameStop announced it was getting into the collectible trading cards business last October, he noted the company’s “utter lack of competitive advantage” in the “wildly fragmented” business.
“The company has once again accelerated store closures in an attempt to save its way to prosperity, and its plans to enter the trading card business and to invest in cryptocurrency are striking in their lack of specificity,” Wedbush analysts led by Pachter wrote in a research note Monday.
They said that GameStop’s entry into trading cards and crypto followed its last two attempts at a turnaround, and that its shares “trade at a level that ignores the company’s many challenges ahead.” They called its entry into cryptocurrency “an unsubtle attempt to emulate the success of MicroStrategy , which trades at less than 2x the value of its Bitcoin holdings.” They reiterated their Underperform rating and their 12-month price target of $10.
“Far more likely, they will continue to slowly liquidate by selling off assets” and by closing stores when their leases expire, Pachter said Monday. “That leaves them with ‘profits’ on investment income from their $4.6 billion cash hoard, which they raised by virtue of their meme stock status.”
GameStop management doesn’t hold conference calls to discuss results, and because few analysts follow the company, the consensus forecast as tracked by FactSet includes just two estimates.
Based in Grapevine, Texas, the company offers games and entertainment products online and in stores in the U.S., Canada, Australia, and Europe.
Pachter noted that GameStop’s stock price, trading around 2.5 times cash, suggests investors have faith in CEO Ryan Cohen’s ability to pick investments for them.
In February, Cohen posted a photo of himself on social media with Michael Saylor, co-founder and executive chairman of MicroStrategy, the largest institutional holder of Bitcoin , apparently helping to fuel the rumors about GameStop’s own crypto ambitions.
“MicroStrategy trades as around twice the value of its Bitcoin holdings, so it remains to be seen if Ryan Cohen can find a better cryptocurrency to invest in and drive GME share to 2.6 times the value of its assets,” Pachter said.
On March 3, GameStop announced a deal with digital financial services company Zip Co. to let U.S. customers pay in installments for their online and in-store gaming purchases.
Zip U.S. CEO Joe Heck said at the time that nearly 84% of Zip’s U.S. customers shop for gaming and accessories at GameStop. “Gaming is one of Zip’s most popular categories overall, making Zip an ideal partner for helping these shoppers responsibly purchase goods and services from one of the industry’s fan-favorites and top businesses.”
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Building a property portfolio can fast-track wealth creation, but only with the right strategy. Here is how to balance income, growth and risk from the start.
3 min
Property prices are rising, and buyer confidence is improving, making it an appealing time to start building a property portfolio.
But while the idea of owning multiple properties is attractive, many investors chase passive income without a clear strategy.
This can lead to over-leveraging and financial stress when interest rates rise or market conditions shift.
A smarter approach is to build a balanced portfolio that considers income, capital growth and risk.
Here are six key factors to weigh up before you begin.
Start with your current position
The foundation of any successful portfolio is understanding where you stand.
Before buying your first or next property, be clear on how much capital you have, your borrowing capacity and the level of risk you can comfortably manage.
Too many investors rush into high-yield assets without considering whether they suit their circumstances.
The result can be properties that look good on paper but prove difficult to hold.
Knowing your financial position helps determine whether to focus on cash-flow-positive properties, growth assets or a balanced mix of both.
Target assets that deliver real value
Not all properties are equal. When building a portfolio designed to generate income, quality matters more than headline yield.
In the commercial sector, smaller retail assets can offer a practical entry point.
They are often more affordable than large industrial properties while still delivering solid rental returns and value-add potential.
A tenancy leased below market rates, for example, can become a strategic purchase. When the lease is reviewed, bringing rent in line with market levels can lift both income and capital value.
Simple improvements such as updated fit-outs, better amenities or modest refurbishments can also increase tenant demand and justify higher rents.
Focusing on assets where you can influence performance helps create sustainable income and build equity for future investments.
Residential properties still play an important role
Residential property remains a core component of a balanced portfolio, offering stability to complement commercial holdings.
Long-term capital growth is largely driven by land value, so buying in areas with limited supply and strong demand can support future appreciation.
Dual-income strategies can also strengthen returns.
Adding a granny flat or secondary dwelling to a house can increase rental income without the need to purchase another property.
This approach can boost cash flow while keeping debt exposure manageable.
Use leverage carefully
Leverage can accelerate portfolio growth, but it also increases risk.
Before taking on additional debt, stress-test each purchase.
Consider whether you could comfortably hold the property if interest rates rose by several percentage points, and ensure you have buffers for vacancies or unexpected costs.
For business owners and SMSF investors, borrowing can provide access to assets that might otherwise be out of reach.
However, decisions should be based on what you can sustainably manage, not simply on how much a lender is willing to approve.
Diversify across and within asset classes
A resilient portfolio is built on diversification across locations, asset types and ownership structures.
Investing across different states can help manage land tax thresholds and take advantage of varying property cycles.
Within commercial property, combining retail, medical and selected office assets can reduce reliance on a single sector.
In residential markets, balancing growth-focused properties with income-producing assets can improve performance across changing conditions.
Ownership structures also matter. Whether property is held personally, in a trust or through an SMSF should align with long-term tax planning and wealth objectives.
Professional advice can help ensure the portfolio is positioned for sustainable growth.
Focus on creating income, not just finding it
One of property’s advantages is the ability to actively improve returns.
Renovations, secondary dwellings and reviewing under-market leases can increase both rental income and capital value.
These strategies allow investors to generate equity and strengthen cash flow without relying solely on market growth.
The goal is not to own the most properties, but to own the right ones.
A small number of well-selected, well-managed assets often outperform a scattered portfolio built without a clear strategy.
Financial independence is more likely when a portfolio supports itself and delivers a steady, reliable income stream.
Abdullah Nouh is the founder of Mecca Property Group, a boutique buyer’s agency in Melbourne helping Australians build wealth through strategic property investment.
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