GameStop’s Revenue Boosted by $528M Bitcoin, Reports Minimal

TLDR

Table of Contents

GameStop holds $528.6M in Bitcoin, gaining $28.6M in unrealized value.
Q2 net loss reduced to $18.5M, supported by cost-cutting and crypto gains.
Collectibles sales jumped 63% amid strong demand for exclusive items.
GME stock rose 7% after earnings, reaching a $10.55B market cap.

GameStop narrowed its Q2 net loss after a strong boost from its Bitcoin holdings and tighter cost controls. The company reported $528.6 million in Bitcoin assets, which produced an unrealized gain of $28.6 million. This came as net sales declined and core hardware and software revenue slowed. GME stock reacted positively after the report, rising over 7% in after-hours trading as investors responded to the crypto strategy and improved financials.

Bitcoin Holdings Strengthen GameStop’s Financial Position

GameStop reported it purchased $500 million worth of Bitcoin during the second quarter of 2025. By the end of the quarter, the company’s holdings were valued at $528.6 million. This gain of $28.6 million was not realized but still contributed positively to the balance sheet.

The company stated it uses Coinbase pricing to determine the fair value of its Bitcoin holdings. Bitcoin has risen by around 18% since GameStop made its purchase of 4,710 BTC. This move places the company among a small group of public firms holding Bitcoin in their corporate treasuries.

GameStop’s leadership has not commented in detail about its long-term strategy with Bitcoin, but the purchase and valuation gain have supported quarterly figures. The company also revealed plans to raise $1.75 billion from investors. Market analysts suggest some of these funds could go toward expanding digital asset reserves.

Quarterly Performance Shows Narrower Loss and Rising Collectibles Revenue

For the quarter ending August 2, 2025, GameStop reported a net loss of $18.5 million. This was an improvement compared to prior periods. The loss was reduced thanks to both the gain from Bitcoin and continued cost-cutting actions.

Net sales fell to $674 million, showing weakness in hardware and software sales. However, operating losses were trimmed to $9.2 million as the company managed its expenses more tightly. Cost-saving measures also included exiting its Canadian and French operations.

One of the stronger areas for GameStop this quarter was its collectibles division. Sales of collectibles grew 63%, supported by trading cards, branded merchandise, and exclusive releases. The company has been focusing more on this area to support sales as traditional console game demand slows.

Exclusive deals tied to releases like Borderlands 4 have helped attract buyers to GameStop’s stores and online platforms. This shift is part of a broader strategy to reduce dependence on hardware and physical game sales.

Stock Moves Higher as Investors Respond to Crypto Strategy

GameStop shares rose 1.5% during normal trading hours and then climbed 7% to $25.29 in after-hours trading. The company’s market capitalization now stands at $10.55 billion, with an enterprise value of $6.28 billion.

While the stock reacted positively to the Q2 report, its performance over the past year has been flat. The share price is down 1.38% over 12 months. Short interest remains high, with about 67.8 million shares shorted, equal to 15% of total shares.

GameStop raised $270 million through convertible bonds to improve its cash position. At the end of the quarter, it held $6.1 billion in cash and equivalents, not counting its crypto assets.

The company said it will continue efforts to improve liquidity and reduce losses. It also aims to use the Bitcoin strategy as a core part of its financial plan moving forward.

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