GameStop announces plans to invest in Bitcoin, shares increase
GameStop’s board has approved a strategy to purchase Bitcoin using corporate cash, following a tactic popularized by MicroStrategy.
Cheddar
The video game retailer GameStop is set to close more stores soon and will shift its focus towards cryptocurrency by investing in Bitcoin.
What impact will this have on Ohio? Here’s what we know.
Why is GameStop shutting stores and investing in Bitcoin?
In a recent filing with the SEC, GameStop did not specify which stores will be closed, but it indicated that a “significant number” of locations will shut down this year due to “current market conditions and the performance of individual stores.” Currently, the company operates 3,203 stores globally, with 2,325 situated in the U.S.
GameStop has also revealed plans for a $1.3 billion offering of 5-year convertible notes to fund the purchase of Bitcoin. “The Board has approved the inclusion of Bitcoin as a Treasury reserve asset, meaning a portion of our cash or forthcoming debt and equity issuances may be utilized to invest in Bitcoin,” the retailer stated in its filing. Following the announcement, shares of the company rose by 11.6%, although they later fell more than 20% on Thursday.
How many GameStop outlets are located in Ohio and Kentucky?
Ohio ranks fifth in the U.S. for the highest number of GameStop stores, boasting 139 locations according to data from LocationsCloud.
Cincinnati has 11 GameStop stores, with additional locations in Milford, West Chester, Hamilton, and Middletown. GameStop operates stores in nearby Florence and Newport, Kentucky.
In Columbus, there are nine stores, with more in Lancaster, Hilliard, Dublin, Westerville, Powell, and Reynoldsburg.
In Akron, there is a single GameStop location, with other stores in Cleveland, Canton, Kent, Brunswick, and Bedford.
GameStop closed over 20 stores in Ohio earlier this year
This latest series of store closures follows the shutdown of 26 locations in Ohio and five in Kentucky earlier in the year, according to Newsweek.
The January closures affected more than 400 stores across the U.S., nearly doubling the number of locations closed in 2024.
Where can I find a GameStop store near me?
To locate a store near you, please visit GameStop’s store locator.
What is Bitcoin and why is it gaining popularity?
Bitcoin is a form of digital currency that can be traded, bought, and mined. It serves as a payment method independent of any governing body, according to Investopedia. Bitcoin operates on the Blockchain, which is a network of computers that keeps records of crypto transactions and is compatible with Bitcoin ATMs.
The supply of Bitcoin is limited, and due to its decentralized nature, it is not issued by central banks or authorities, as reported by USA TODAY. Despite its price volatility, some investors have profited significantly by investing in Bitcoin at opportune moments.
