GameStop Corp (NYSE:GME) stock rallies 15.67% (As on March 26, 11:15:21 AM UTC-4, Source: Google Finance) after the company reported overnight fiscal Q4 earnings increased and approval bitcoin cryptocurrency can be used as a treasury reserve. The company announced that its board unanimously approved an update to its investment policy, allowing bitcoin to be added as a treasury reserve asset. The integration of Bitcoin into GameStop’s treasury reserves is expected to begin immediately, with the company leveraging the existing market infrastructure for purchasing and storing digital assets. The decision echoes that of Strategy, the largest corporate holder of bitcoin, which in February dropped the word “Micro” from its name and unveiled a new logo, to emphasize its commitment to the cryptocurrency space. Strategy said that the rebranding was “a natural evolution” as it seeks to integrate bitcoin — the world’s biggest and best-known cryptocurrency — into the heart of its business operations. The move by GameStop comes shortly after U.S. President Donald Trump’s executive order, signed earlier this month, to establish a strategic reserve of cryptocurrencies using tokens already owned by the government. GameStop said it will use a portion of its cash or future debt or equity issuances to be invested in bitcoin, but did not specify the maximum amount of bitcoin it might buy, according to its quarterly filing.

Meanwhile, Selling, general and administrative (“SG&A”) expenses were $282.5 million for the fourth quarter, compared to $359.2 million in the prior year’s fourth quarter. Net income was $131.3 million for the fourth quarter, compared to net income of $63.1 million for the prior year’s fourth quarter. Adjusted EBITDA of $96.5 million for the fourth quarter, compared to adjusted EBITDA of $88.0 million for the prior year’s fourth quarter. Cash, cash equivalents and marketable securities were $4.775 billion at the close of the quarter. The company has completed divestiture of Italy and the wind-down of store operations in Germany. The Company also intends to pursue a sale of its operations in France and Canada.

GME in the fourth quarter of FY24 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 8 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue decline of 28 percent to $1.28 billion in the fourth quarter of FY24, missing the analysts’ estimates for revenue of $1.48 billion.