GameStop’s latest earnings report shows that the company’s bet on Bitcoin has softened its quarterly losses, even as sales in its core gaming business continue to decline.
The retailer purchased $500 million worth of Bitcoin in the second quarter, a position now worth $528.6 million. That $28.6 million unrealized gain helped offset weaker demand for hardware and software, which pushed net sales down to $674 million. Net loss came in at $18.5 million, a marked improvement from earlier quarters, with operating losses trimmed to $9.2 million thanks to aggressive cost controls.
GameStop also saw a 63% jump in collectibles, bolstered by trading cards, merchandise, and limited-run partnerships. Exclusive editions of upcoming titles like Borderlands 4 are part of a broader push to diversify revenue as console sales plateau. Hardware sales still found support from Nintendo’s Switch 2 launch and steady demand for PlayStation 5 and Xbox Series X|S.
Shares of GME rose modestly on the report, climbing 1.5% in regular trading and surging as much as 7% after hours to $25.29. The company now holds a market value of $10.55 billion, though its stock has been flat over the past year with short interest remaining elevated at 67.8 million shares, about 15% of the total float.
Alongside its Bitcoin reserves, GameStop ended the quarter with $6.1 billion in cash and equivalents. Recent moves to bolster liquidity include a $270 million convertible bond raise and the wind-down of operations in Canada and France.
Management is betting that streamlining operations while leaning on collectibles and digital assets will provide a more stable footing as traditional sales continue to soften. The strategy also puts GameStop in the company of other public firms using Bitcoin as a balance sheet hedge, further tying its performance to crypto market swings.
Still, challenges remain. Revenue pressures show no sign of easing in the near term, and with short interest high, GME remains one of the most closely watched stocks on Wall Street. Whether Bitcoin gains can continue to mask the weakness in its core business is now a key question for investors heading into the second half of the year.
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Source: https://coindoo.com/bitcoin-just-saved-gamestop-from-a-bigger-meltdown/