GameStop announced plans to shutter more than 430 U.S. retail locations this month as part of a comprehensive portfolio optimization review. The company operated 2,325 stores in the United States as of February and closed 970 locations globally in fiscal 2024, including 590 in the U.S. The decision follows a December 9 filing with the U.S. Securities and Exchange Commission, in which GameStop indicated it expects to close a significant number of additional stores before the end of fiscal 2025 on January 31.

In the third quarter of fiscal 2024, GameStop reported net sales of $821 million, a 4.6% decline from $860.3 million in the prior-year period. Operating income rose to $41.3 million, compared with an operating loss of $33.4 million a year earlier, while net income increased to $77.1 million, up from $17.4 million. The improvement in profitability reflects ongoing cost controls and store rationalization efforts, even as consumer spending shifts toward digital game distribution.

GameStop enters fiscal 2025 with a fortress balance sheet, holding $8.8 billion in liquidity and minimal net leverage. The company’s bitcoin reserves were valued at $519.4 million at the end of the third quarter, following a board resolution to add bitcoin as a treasury reserve asset. This cash-rich position underpins GameStop’s capacity to pursue strategic M&A opportunities and support digital transformation investments without reliance on external financing.

The board of directors granted Chairman and CEO Ryan Cohen a performance-based stock option award designed to align his incentives with long-term value creation. The award vests upon achieving a market capitalization of $100 billion and multi-billion dollar EBITDA hurdles. Management has signaled a transformative M&A mandate, targeting high-ROIC transactions that could drive GameStop toward a valuation floor consistent with liquidation of its cash and crypto assets, while setting upside targets well above current levels.