GameStop revealed it bought 4,710 BTC during the quarter, marking one of the larger corporate Bitcoin purchases of the year and helping narrow its quarterly loss.
The Grapevine, Texas-based retailer reported a net loss of $18.5 million for the quarter ended Aug. 2, down from a $44.8 million profit in the prior quarter. Revenue slipped to $673.9 million from $732.4 million as hardware and software sales softened, but lower operating costs and stronger collectibles sales helped margins.
GameStop said it spent $500 million to acquire the Bitcoin and carried the holdings at a fair value of $528.6 million at quarter-end, producing an unrealized gain of $28.6 million. The company uses Coinbase pricing to mark the position each reporting period.
The move puts GameStop alongside a small but growing group of public companies that hold crypto on their balance sheets. Management — led by Chairman Ryan Cohen — has reshaped the company’s finances this year, raising cash via a $2.7 billion convertible bond sale and selling certain international units. Excluding digital assets, GameStop ended the quarter with $6.1 billion in cash and equivalents.
Why it matters: Bitcoin’s ~18% rise since early May lifted GameStop’s carrying value, providing a short-term cushion to results and signaling a continued appetite among some corporates to diversify treasury assets into crypto. However, adding crypto also exposes corporate financials to price volatility and unrealized swings that can affect earnings and reported equity.
Shares reacted modestly, rising as much as 5.7% in after-hours trading. Collectibles — trading cards and pop-culture merchandise — still made up nearly a third of sales, underscoring the company’s dual retail and treasury strategies.
Source: Decrypt. Read the original coverage for full details.
