To The Moon

$GameStop(GME)$ stock rose 12% after the company released its earnings report for the fourth quarter of fiscal year 2025.

Despite a significant revenue drop, the company exceeded analysts' expectations for EPS and announced that the board unanimously approved an updated investment policy, incorporating Bitcoin as a treasury reserve asset.

• Adjusted EPS: $0.29, far exceeding the analyst consensus of $0.09, beating expectations by $0.20.

• Revenue: $128 million, down significantly from $179 million in the same period last year, and missed expected $150 million.

• Net Profit: $131.3 million, doubling from $63.1 million last year.

• Cash Flow: $477 million, a significant increase from $120 million a year ago, thanks to stock issuance.

While GameStop's revenue significantly decreased in Q4 of fiscal year 2025, the company achieved substantial net profit growth through cost control and improved profit margins.

The company improved profitability through cost-cutting measures and higher-margin sales. The adjusted EPS far exceeded market expectations, demonstrating improvements in financial management and operational efficiency.

The company also announced that it would include Bitcoin as a reserve asset, joining the ranks of companies like $Strategy(MSTR)$. $Strategy(MSTR)$ buys more bitcoin through debt issuance. The market seems to buy this hype with Strategy soaring 300% last year.

By updating its investment policy to include Bitcoin as a treasury reserve asset, GameStop may open up new revenue streams and risk hedging opportunities.

Management is optimistic about this strategic shift, believing it will help enhance the company's financial stability and growth potential.

Concerns: Revenue misses; Bitcoin is still in a downtrend.

Are you bullish on $GameStop(GME)$’s bitcoin move?

Does improved profitability mean $GameStop(GME)$ have more upside potential during bull market?

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