GameStop, the corner retailer of video games, is set to implement significant changes in the coming years. According to a recent regulatory filing, the company anticipates shuttering a “significant number” of its retail locations by 2025. This announcement coincides with the company’s decision to revise its investment policy to include Bitcoin.

Store Closures: What We Know

In a statement this week, GameStop confirmed the planned closures of its stores, but specific locations have not yet been made public. The company’s statement comes as part of a larger effort to reconfigure its operations and increase profitability.

Bitcoin Investment Strategy

In addition to store closures, GameStop will now consider investing a portion of its cash reserves or potential debt and equity offerings into Bitcoin. The decision was reached during a board meeting, featuring company CEO Ryan Cohen and other members.

GameStop articulated in its SEC filing that the updated investment policy aims to enhance liquidity for meeting daily financial commitments, while also aiming to maximize investment returns.

Background of Changes

The announcement regarding the revamped investment policy follows rumors that GameStop was exploring a move into the cryptocurrency space. This comes amid significant challenges for the retail business, which has seen a decline in the number of operational stores from approximately 4,200 last year to around 3,200 at the end of their most recent fiscal quarter.

Financial Performance Overview

In the latest financial reports, GameStop noted that it generated $1.28 billion in net sales during the last quarter of its fiscal year, reflecting a 28.5% decrease compared to the same period the previous year. However, the company reported a marginal increase in net income to $131.1 million. For the fiscal year overall, total net sales stood at $3.82 billion, with net income reaching $131.3 million.

As for Bitcoin, the cryptocurrency’s value was reported to be just above $87,000 earlier this week, which might influence the timing and scale of GameStop’s investment.