GameStop (GME, Financials) said its board has approved a plan to invest corporate cash in bitcoin and U.S. dollar-denominated stablecoins, as the company reported fourth-quarter net income more than doubling from the prior year.
GameStop has approved a new digital asset investment plan letting the business put corporate money into U.S. dollar-denominated stablecoins and bitcoin.The board of directors unanimously endorsed the action; no limit has been established on the overall quantity of bitcoin the business might buy. GameStop has around $4.8 billion in cash and cash equivalents as of Feb. 1. In its application with the U.S. Securities and Exchange Commission, the firm admitted that the plan is unproven, the asset class is erratic, and success is not certain.The strategy reflects the one used by MicroStrategy (MSTR, Financials), now known as MSTR, which has grown to be one of the most notable corporate bitcoin holders. Over the last several years, that company's wager on the cryptocurrency has caused notable stock price fluctuations.Since assuming control, Chief Executive Officer Ryan Cohen has spearheaded a larger transformation initiative that includes the decision, which calls for operational streamlining and cost cutting. GameStop also announced fourth-quarter net profit of $131.3 million, up from $63.1 million in the same time previous year.
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