GameStop Stock – GameStop Joins Bitcoin Boom with $513M BTC Purchase
GameStop Stock – GameStop Corp (GME) reported mixed financial results for its first quarter ending May 3, showing progress on profitability but falling short on revenue expectations. The video game retailer, now also a Bitcoin-buying public company, reported Q1 revenue of $732.4 million, missing analyst estimates of $754.2 million and marking a 17% decline year-over-year from $881.8 million.
Despite weaker sales, GameStop posted a net income of $44.8 million, a stark improvement from a net loss of $32.3 million in the same period last year. Operating losses were also reduced to $10.8 million, down from $50.6 million a year earlier.
GME Falls Over 3.5% After-Hours on Revenue Miss
Following the earnings release, GME stock declined over 3.5% in after-hours trading, falling to just above $29, according to Google Finance. While shares remained flat throughout the past month, they are down around 3.8% year-to-date, despite renewed retail investor interest and the company’s latest Bitcoin strategy.
GameStop Holds $6.4B in Cash; Bitcoin Buys Begin
In a major strategic shift, GameStop entered the Bitcoin market in May, announcing its first BTC investment of 4,710 Bitcoin—worth approximately $513 million at the time of purchase on May 28. The company funded the acquisition through debt, launching a $1.3 billion convertible notes offering.
GameStop reported $6.4 billion in cash, cash equivalents, and marketable securities, up significantly from just $1 billion a year ago, giving the company flexibility to pursue further crypto treasury strategies. While it hasn’t disclosed long-term plans or total BTC targets, it stated it could liquidate its holdings if necessary.
GameStop joins a growing list of publicly traded firms adding Bitcoin to their balance sheets, positioning itself at the intersection of retail investing and digital assets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
