How did GameStop's revenue cost strategy change in 2025?

GameStop's revenue cost strategy in 2025 was marked by a significant shift, including a bold move into Bitcoin and ongoing efforts to close underperforming stores. This shift was necessitated by the company's declining revenue and profitability, which were exacerbated by the industry's digital transition.

1. **Emphasis on Bitcoin**: GameStop's board voted unanimously to add Bitcoin as a treasury reserve asset, a move that echoes the strategy of other companies like Strategy, which has seen significant stock appreciation after amassing a large holdings of Bitcoin. GameStop plans to invest a portion of its cash or future debt and equity issuances in Bitcoin, although the exact amount was not disclosed. This investment is aimed at optimizing investment returns and providing liquidity.
2. **Store Closures**: GameStop has been aggressive in closing underperforming stores. In fiscal 2024, the company closed 590 stores in the U.S., and it anticipates closing a "significant number" of additional stores in fiscal 2025. This strategic move is part of a broader effort to streamline operations and reduce costs.
3. **Diversification and Cost Reduction**: GameStop's strategy also includes diversifying its revenue streams beyond traditional gaming products. The company has expanded into merchandise, collectibles, and competitive gaming, among other areas. Additionally, the company has reported a rise in fourth-quarter profit, helped by its efforts to reduce costs.

Overall, GameStop's revenue cost strategy in 2025 is characterized by a focus on innovation and a willingness to take bold steps into new areas such as Bitcoin, while simultaneously closing stores to reduce costs and improve profitability.