 as a reserve asset.){kind=link}
GameStop has formally joined the increasing number of businesses that are using Bitcoin into their financial plan.
Earlier today, on 26th March, the board of directors of the massive gaming retail company gave its approval for Bitcoin (BTC) to be added as a reserve asset.
The corporation, which has historically concentrated on physical retail, is making a big change with this move as it adjusts to the increasing power of digital assets in the financial industry.
Shares of the firm closed low on Tuesday, being down nearly 0.8% but saw a surge in after-hours trading of over 2%.
How Will The Bitcoin Reserve Help The Firm?
Like other large companies that have included cryptocurrencies into their treasury strategy, GameStop hopes to diversify its asset portfolio and protect itself from inflation by adding Bitcoin to its reserves.
It is anticipated that the move will establish GameStop as a progressive participant in the developing nexus of digital banking, retail, and gaming.
Although the company has not yet revealed how much Bitcoin it intends to own, the action is consistent with broader market trends that show businesses are increasingly using Bitcoin as a store of value.
Also Read: Metaplanet’s Bitcoin Portfolio Grows to 3,350 BTC Following Latest Acquisition of 150 Bitcoins
Bitcoin’s Hype as Reserve Assets Picks Pace
A growing number of businesses are using Bitcoin as a reserve asset because of its potential as an inflation hedge and its growing credibility as a store of value.
Businesses looking to diversify their assets and guard against currency devaluation may find Bitcoin a compelling alternative because of its decentralized structure and restricted availability.
Bitcoin is considered a digital substitute for conventional fiat currencies and is sought after as it provides long-term stability as concerns about inflation grow worldwide.
GameStop’s Move in Tandem With Larger Market
GameStop’s new move is in tandem with the larger market where prominent businesses have already embraced Bitcoin, including Tesla and MicroStrategy.
Other companies that have made significant investments in the digital asset include Galaxy Digital and Square (now Block). These businesses believe that Bitcoin will play a significant role in the financial industry in the future and that its value will increase with time.
Also Read: Strategy Purchases Additional 6,911 BTC for $584.1 Million, Breaks The 500k Mark For Total Holdings
Bitcoin to Act As Hedge Against Inflation For Big Corporations
Bitcoin is currently being considered by several companies as an inflation hedge. The fixed supply of 21 million Bitcoin coins offers a potential buffer against the devaluation of fiat currencies, as rising inflation is weakening traditional currencies.
Bitcoin, commonly referred to as “digital gold,” has the potential to retain its value over time, making it a valuable asset for companies looking to protect their capital as inflation lowers purchasing power.
Businesses that possess Bitcoin benefit from diversification since they are less dependent on traditional assets like cash or stocks, which can be more volatile during periods of inflation.
Bitcoin’s global accessibility and decentralized structure also provide a buffer against currency devaluation and geopolitical instability, which might affect traditional currencies.
Also Read: Strategy Sets Public Offering Price for 8.5M Shares of Series A Preferred Stock at $85 Each