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Highlights
- GameStop disclosed $528.6 million in Bitcoin holdings, generating an unrealized gain of $28.6 million.
- The company reported a narrower Q2 net loss of $18.5 million, supported by its Bitcoin investment and cost-cutting measures.
- Upon the report release, GME stock rose 7% in after-hours trading, bringing its market cap to $10.55 billion.
GameStop has reported an increase in revenue thanks to its $528 million Bitcoin holdings. This has helped in reducing its losses in Q2, despite ongoing revenue challenges.
Bitcoin Investment Lifts GameStop’s Balance Sheet
In its latest report, GameStop disclosed a boost in its revenue, minimizing previous losses. This comes after the purchase of $500 million worth of BTC during the second quarter. At quarter’s end, those holdings were valued at $528.6 million. This resulted in an unrealized gain of $28.6 million for the company.
The firm uses Coinbase pricing to measure the fair value of its crypto reserves. This has now placed it among a select group of publicly listed companies holding Bitcoin as part of their corporate strategy. The Bitcoin price is up roughly 18% since the GameStop purchase of 4,710 BTC.
For the quarter ending August 2, 2025, the gaming firm reported a net loss of $18.5 million, an improvement from earlier periods. Net sales, however, slipped to $674 million as hardware and software demand slowed.
Thanks to cost-cutting measures, operating losses decreased to $9.2 million. Collectibles sales also surged 63%, fueled by trading cards, merchandise, and exclusive partnerships with publishers.
The company had made previous efforts to strengthen its collectibles division. This includes exclusive editions of upcoming releases like Take-Two’s Borderlands 4. These moves have helped cushion declines in traditional console and game sales.
Meanwhile, demand around Nintendo’s Switch 2 launch and continued sales of PlayStation 5 and Xbox Series X|S have kept hardware revenue from sliding further.
GME Stock Rises Amid Report Release
GME shares rose 1.5% during regular trading and jumped as much as 7% to $25.29 in after-hours action following the report. The company now holds a market capitalization of $10.55 billion and an enterprise value of $6.28 billion.
However, the GME stock has remained stagnant over the past year. The shares fell by 1.38%, highlighting ongoing difficulties. Short interest is still high at 67.8 million shares, which is about 15% of its total. This situation keeps the stock on the radar of traders looking to profit from price swings.
The firm also raised $270 million through convertible bonds and exited its operations in Canada and France. The moves are designed to streamline operations and enhance liquidity. At quarter-end, the company reported $6.1 billion in cash and equivalents, excluding its digital asset holdings.
To support its revenue recovery, GameStop signaled plans to raise $1.75 billion from investors. This also fueled speculations that at least part of those funds will be directed toward expanding its Bitcoin treasury.
By embracing Bitcoin, GameStop joins the ranks of firms like Strategy that have placed crypto at the center of their treasury management strategies.
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