GameStop’s $528M Bitcoin Bet Narrows Losses Amid Retail Shift

GameStop has added a bold new chapter to its turnaround story by allocating $528 million into Bitcoin, marking one of the largest corporate crypto acquisitions since MicroStrategy’s widely publicized purchases.

For the quarter ending August 2, the Texas-based retailer posted a net loss of $18.5 million, a notable swing from the $44.8 million profit it booked in the previous period. Revenue fell to $673.9 million from $732.4 million, pressured by declining sales in gaming hardware and software.

The company disclosed it acquired 4,710 BTC at a cost of $500 million under a new investment framework, with the holdings gaining $28.6 million in value by quarter-end. GameStop said it marks its assets using Coinbase pricing, exposing its financials to the volatility of crypto markets.

Despite revenue headwinds, operating losses improved to $9.2 million from $10.8 million, helped by leaner overhead costs. Collectibles remained a strong revenue stream, now contributing nearly one-third of total sales.

Chairman Ryan Cohen’s financial restructuring continued to reshape the company. Earlier this year, GameStop raised $2.7 billion via convertible bonds and exited operations in Canada and France, leaving it with $6.1 billion in cash and equivalents on top of its crypto holdings.

With Bitcoin rising nearly 18% since May, GameStop’s balance sheet strategy positions it alongside other publicly traded firms diversifying into digital assets, while signaling to investors that its revival plan goes beyond traditional retail.