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GameStop (GME) updated its corporate investment policy to include Bitcoin, sending shares higher in extended trading Tuesday.
The video game retailer said its board unanimously approved the decision to add Bitcoin to its investment policy, following reports last month that the retailer was considering investing in cryptocurrencies.
The announcement follows speculation about GameStop’s crypto plans after CEO Ryan Cohen last month posted a picture of himself with Michael Saylor, cofounder of Strategy (MSTR), the largest corporate holder of Bitcoin formerly known as MicroStrategy. The price of Bitcoin was just under $88,000 in recent trading.
Shares of GameStop jumped more than 6% in after-hours trading Tuesday following the announcement. The stock was down about 19% for the year so far through the market close.
GameStop also reported fiscal fourth-quarter results, which saw revenue fall 28% year-over-year to $1.28 billion. However, adjusted net income rose to $136.4 million, or 30 cents per share, from $67.7 million, or 22 cents per share, a year earlier. The earnings growth came as the company moved to cut costs.
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