GameStop to add Bitcoin as a treasury reserve asset: This is how the crypto move might affect its stock

GameStop, the video game retailer, announced earlier this week that it would begin holding Bitcoin as a “treasury reserve asset”—one of the most significant moves toward cryptocurrency by a household brand.

As e-commerce and video game consoles with built-in marketplaces have taken a large share of the industry, the brick-and-mortar retailer continues to explore new strategies to stay relevant. The endorsement of crypto seems like another way to attract potential investors, particularly those engaged in digital currencies.

The company’s statement, released on March 25, was brief, simply stating that the “board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.” No details were provided on how much Bitcoin the company plans to acquire.

The significance of the announcement

For those unfamiliar with the term, a treasury reserve asset refers to assets a company holds as part of its financial reserves. In simple terms, this means that in addition to U.S. dollars, GameStop will now hold Bitcoin as part of its reserves.

This move signals confidence in Bitcoin’s long-term value. A company would typically only add an asset to its reserves if it believes it will remain stable or appreciate over time, making it a relatively safe investment. Believers in Bitcoin could be enticed to invest in GameStop, based on the company’s announcement.

The coordinated effort that pushed GameStop’s stock higher

GameStop’s stock made Wall Street history in January 2021 when a group of online traders coordinated to boost its price. This surge left hedge funds that had shorted the stock with massive losses.

Before this small-investor-led movement, GameStop’s stock was trading below $3.00. After the rally, it has never dropped below $10.00.GameStop’s

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