GameStop (NYSE:GME) shares surged 16.42% to $29.57 as of 11:27 a.m. ET on Wednesday following a mixed fourth-quarter report and news that the company will invest in Bitcoin (BTC-USD).
While Q4 revenue dropped 28.5% year over year, the company posted net income of $131.3 million, up from $63.1 million a year ago. Earnings per share came in at $0.30, beating analyst expectations of $0.08 and improving from $0.22 the prior year.
Hardware and accessories accounted for 56.6% of sales, down from 61% a year ago. Software sales declined to 22.3% from 26%, while collectibles rose to 21.1% of revenue, up from 13%.
The stock rallied after GameStop's board approved a change to its investment policy, allowing it to hold Bitcoin. The company ended Q4 with $4.76 billion in cash available for deployment.
The move follows weeks of speculation fueled by CEO Ryan Cohen's social media post featuring Strategy (NASDAQ:MSTR) CEO Michael Saylor. Strategy has been a high-profile institutional buyer of Bitcoin since 2020 and is often viewed as a proxy for crypto exposure. Shares of Strategy are up 84% over the past year.
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