GameStop Acquired 4,710 Bitcoin as Part of Strategic BTC Treasury: Report

GameStop has acquired 4,710 Bitcoin between May 3 and June 10, 2025. This acquisition is part of the company’s growing interest in cryptocurrency, and it was revealed alongside GameStop’s first-quarter financial results for 2025. While the company’s earnings showed improvement, the stock’s response to the report reflected some investor concerns.

GameStop Financial Performance Falls Short of Expectations

For the first quarter, GameStop said earnings per share (EPS) were $0.09, better than the $0.04 forecast by analysts.

While this is a positive result, the company’s $732.4 million in revenue fell short of Wall Street’s expectation of $754.2 million. From Q1 2024 to Q1 2025, GameStop’s operating margin rose from -5.7% to -1.5%, which suggests the company’s ability to control operating costs. Moreover, free cash flow turned around to stand at $189.6 million versus the negative $114.7 million last year.

Despite being profitable, the company is still struggling in the competitive gaming industry, especially with the ongoing trend of digital gaming and streaming services. However, these hurdles are not stopping GameStop from aiming to diversify its revenue streams.

GameStop Expands Bitcoin Holdings

Along with its financial performance, GameStop made headlines by purchasing 4,710 Bitcoin between May 3 and June 10, 2025. Based on current market prices, these holdings are valued at approximately $516.6 million.

This move is a continuation of GameStop’s plan to hold digital assets as part of its treasury strategy. The retailer previously announced its intention to follow in the footsteps of companies like Strategy, which has made significant investments in Bitcoin.

GameStop’s decision to hold Bitcoin aligns with its broader strategy of using excess cash to invest in risk assets, including both cryptocurrencies and stocks. The company’s board had approved an update to its investment policy earlier this year, officially recognizing Bitcoin as a treasury reserve asset.

Bitwise Launches New ETF Based on GameStop BTC Strategy

At the same time, Bitwise Asset Management issued the first ever GameStop-focused ETF, the Bitwise GME Option Income Strategy ETF (IGME). To capitalize on GameStop’s recent Bitcoin acquisition strategy, this ETF focuses on stock’s volatility as well as its possibility for growth resulting from being invested in digital assets. The new ETF is designed to provide income to investors from GameStop’s volatility via covered call strategies as well as upside exposure to the company’s holdings of Bitcoin.

According to Jeff Park, Head of Alpha Strategies at Bitwise: ‘IGME is intended to reflect the retail investor interest in viewing GameStop as a crypto play, and the company’s new venture into this space.’ Park noted;

“IGME gives investors the option to invest in an option income ETF based on an equity that is at the confluence of retail investor prominence, a fundamental business earning revenue, and the use of digital assets.”

Stock Reaction to Earnings Report

Following the announcement of its first-quarter earnings, GameStop’s stock price dropped by more than 4% in extended trading on June 10, 2025. Despite reporting its fourth consecutive quarterly profit, the company’s revenue miss weighed on investor sentiment.

Although the company’s stock price has risen by 33% over the past three months, the fact the earnings report came in weaker than expected add to worries about the company’s future growth.

In recent years, GameStop has suffered with declining sales, as a result of the competition from digital gaming and streaming services. However, the new moves into Bitcoin indicate that the company is taking chances to fuel growth.