GameStop shares surge after firm pledges to buy bitcoin, close physical stores

New York Post - Mar 25th, 2025

GameStop has announced that its board has approved the addition of bitcoin as a treasury reserve asset, mirroring similar moves by other prominent companies like Strategy. This decision led to a 7% increase in GameStop's shares during after-hours trading. The company's approach includes using cash or potential future debt or equity issuances for bitcoin investments, although it did not disclose the maximum amount it intends to purchase. The announcement coincides with an executive order by President Trump to establish a strategic reserve of cryptocurrencies, emphasizing a growing trend of integrating digital currencies into business operations. GameStop also reported a significant increase in fourth-quarter net income, more than doubling from the previous year, largely due to successful cost-cutting measures amid challenges in its traditional retail business.

This move represents a strategic shift for GameStop, a company that has struggled in recent years due to the rise of digital downloads and game streaming services, which have affected its core retail operations. By closing numerous stores and focusing on cost reduction, GameStop is attempting to stabilize its financial position while exploring new avenues for growth through cryptocurrency investments. The decision to hold bitcoin as a reserve asset reflects a broader acceptance of cryptocurrencies in the corporate world, highlighted by President Trump's recent executive order. This could potentially position GameStop more favorably in the evolving digital economy, as it seeks to reinvent itself beyond its historical reliance on physical retailing.

Cryptocurrency Bitcoin President Trump Strategy Game Stop Treasury Reserve Retail Turnaround

Story submitted by Fairstory

RATING

5.8

Moderately Fair

Read with skepticism

The article provides a timely and engaging look at GameStop's decision to invest in Bitcoin, a topic of significant public interest. It effectively communicates key facts and offers some context by comparing GameStop's strategy to that of Strategy (formerly MicroStrategy). However, the article's accuracy is undermined by an unverified claim about an executive order, and it lacks transparency in sourcing and critical analysis of the potential risks associated with the investment. While the article is clear and readable, it could benefit from a more balanced presentation of perspectives and greater depth in exploring the implications of GameStop's financial strategy. Overall, the story is informative but would be strengthened by improved sourcing and a more comprehensive examination of the issues at hand.

Accuracy

The article presents several factual claims that align with verified information, such as GameStop's decision to invest in Bitcoin as a treasury reserve asset. This is corroborated by multiple sources, including official announcements and SEC filings. However, the claim about President Trump's executive order on cryptocurrencies lacks verification and appears to be inaccurate, as no such order is currently documented. Additionally, while the stock price increase is generally accurate, the exact percentage varies slightly across sources. The comparison with Strategy's rebranding is mostly accurate but requires more context about the timeline and specifics of their rebranding efforts.

Balance

The article primarily focuses on GameStop's decision to invest in Bitcoin, offering a limited range of perspectives. It mentions the company's financial struggles and cost-cutting measures, but the narrative heavily leans towards the positive implications of the Bitcoin investment. The comparison with Strategy adds some balance by providing a broader industry context, yet the article does not explore potential risks or criticisms of such a financial strategy. This lack of opposing viewpoints or critical analysis results in a somewhat unbalanced presentation.

Clarity

The article is generally clear and straightforward, with a logical flow of information. It effectively communicates GameStop's decision and its financial background. However, the inclusion of an unverified claim about President Trump's executive order introduces confusion and detracts from the clarity. The article could also improve clarity by providing more context on Strategy's rebranding and the broader implications of GameStop's financial strategies.

Source quality

The article does not explicitly cite its sources, which makes it difficult to assess the credibility and reliability of the information. While it is evident that some claims are based on official GameStop announcements and filings, the lack of direct attribution weakens the overall source quality. The mention of President Trump's executive order appears to be unfounded, suggesting that not all sources or claims were thoroughly vetted. Greater transparency in sourcing would enhance the article's credibility.

Transparency

The article lacks transparency, particularly in terms of sourcing and explanation of the basis for its claims. It does not disclose the methodology for verifying information or any potential conflicts of interest. The article could benefit from clearer attribution of facts and a more detailed explanation of the context surrounding GameStop's decision, such as market conditions or expert opinions on the implications of investing in Bitcoin.