GameStop to Close More Stores, Invest in Bitcoin Amid Struggles
GameStop has announced plans to shut down a “significant number” of additional stores in the coming months while shifting some of its financial focus toward cryptocurrency investments.
In a regulatory filing on Tuesday, the struggling video game retailer revealed that it has already closed nearly 1,000 stores worldwide over the past year, with the majority of closures occurring in the United States, where 590 locations shut down. Europe saw over 330 closures, while nearly 50 stores were shuttered in Canada and Australia. As of February 1, the company’s global store count had dropped to 3,203, a sharp decline from its peak of 6,000 stores a decade ago.
GameStop has faced ongoing challenges as more consumers shift toward digital game purchases and streaming, making its brick-and-mortar model increasingly outdated. The company, which became a focal point of the meme stock frenzy in 2021, has struggled to sustain long-term growth despite brief surges in its stock price.
The retailer now joins a growing list of chains scaling back operations or shutting down entirely, including Joann, Forever 21, Kohl’s, and Macy’s, as inflationary pressures and evolving shopping habits continue to reshape the retail landscape.
In addition to store closures, GameStop is pivoting toward Bitcoin, announcing plans to allocate a portion of its cash reserves, debt, or equity issuances to the cryptocurrency.
Retail analyst Neil Saunders described the move as a “defense against irrelevance,” suggesting that GameStop’s strategy now appears to be less about retail and more about positioning itself as a cryptocurrency investment entity.
Despite skepticism about the shift, the crypto announcement gave GameStop’s stock a temporary boost, with GME shares surging 16% in premarket trading on Wednesday.
