GAME CRASH
Iconic gaming store to close ‘significant number’ of stores after shutting nearly 600 locations last year in massacre
The company is taking a major risk with its treasury reserve
A BELOVED video game retailer is set to shutter multiple locations this year as the company faces a difficult future.
The company reported substantial losses and store closures last year.
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GameStop - the video game destination turned pop culture hub - will close a "significant number" of stores this year.
The wave of closures was announced in a US Securities Exchange Commission (SEC) filing.
Amid a year of declining sales, the struggling retail chain closed 590 locations in the US last year.
The company has not specified how many stores will close this year, or which locations are set to close.
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GameStop operated roughly 2,300 stores across the US as of February 2025.
Last year, the company announced it was conducting a store optimization review and cautioned that closures could escalate.
The retailer has also been withdrawing from certain international markets.
In 2023, GameStop shut down operations in Ireland, Switzerland, and Austria.
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It then ceased operation of its German stores and sold its Italian subsidiary in 2024.
This year, GameStop revealed plans to sell its businesses in France and Canada.
I work at GameStop – I get asked the same four questions daily, I get asked out and common requests hurts my brain
The company also disclosed that a portion of its cash reserves or future debt and equity offerings could be allocated to bitcoin.
There is no cap on how much bitcoin it may acquire, and it retains the option to sell any holdings, according to an SEC filing.
In the same filing, GameStop highlighted potential risks tied to the investment, noting that bitcoin is “a highly volatile asset” with a history of considerable price swings.
The company acknowledged that its bitcoin strategy remains untested and may not succeed.
"Our Bitcoin strategy has not been tested and may prove unsuccessful," the filing said.
In early February, GameStop CEO Ryan Cohen posted a photo on X of himself alongside Michael Saylor, the former CEO of MicroStrategy and a well-known bitcoin advocate.
On Tuesday, Saylor shared the same image, adding the caption “Welcome to Team Bitcoin,” tagging Cohen.
GameStop reported its Q4 earnings on Wednesday, noting significant losses.
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Net sales fell a staggering 28.5% to 1.3 billion year over year.
Meanwhile, the company's net income increased by more than double, amounting to $131 million.