GameStop, the Texas-based video game retailer, reported a significant reduction in its quarterly net loss, which was largely attributed to a major investment in Bitcoin. The company posted a net loss of $18.5 million for the quarter, a notable improvement from the $44.8 million profit in the previous quarter.
A key factor in this financial shift was GameStop's purchase of 4,710 Bitcoin for $500 million, an investment that grew to $528.6 million by the end of the quarter, resulting in an unrealized gain of $28.6 million. This move places GameStop among the largest corporate holders of crypto assets.
Despite the positive impact from its Bitcoin investment, the company's revenue declined to $673.9 million, down from $732.4 million in the previous quarter, primarily due to lower sales of gaming hardware and software. However, the company’s operating losses narrowed, helped by reduced selling, general, and administrative expenses. Sales of collectibles, such as trading cards and pop-culture items, were a highlight, making up almost a third of total sales.
The company's financial strategy, led by Chairman Ryan Cohen, has also included raising $2.7 billion from a convertible bond sale and divesting some of its international businesses. GameStop ended the quarter with $6.1 billion in cash and equivalents. Following the release of the report, GameStop's shares saw an increase of up to 5.7% in after-hours trading.
September 2025, Cryptoniteuae