GameStop, the video game retailer that has recently ventured into bitcoin investment, saw its shares drop after – hours on Tuesday as it reported first – quarter revenues that missed analyst estimates.
On June 10, 2025, GameStop Corp. (NYSE: GME) reported financial results for the first quarter of fiscal 2025. The company posted a revenue of $732.4 million, falling short of the analyst – estimated $754.24 million. Total revenue was down about 17% year – over – year. However, it reported first – quarter adjusted earnings of 17 cents per share, beating analyst estimates of four cents per share.
The company attributed the revenue decline to ongoing challenges in physical game sales. Despite this, there were some bright spots in its financial performance. For example, the collectibles segment was the only one that experienced year – over – year growth, with a revenue of $211.5 million. Additionally, the company reported a net income of $44.8 million, up from a net loss of $32.3 million in the prior year’s first quarter. Its operating loss also improved to $10.8 million from $50.6 million in the first quarter of 2024.
In a significant strategic move, GameStop announced in May 2025 that its board unanimously approved an update to its investment strategy to add bitcoin as a treasury reserve asset. Between May 3 and June 10, the company purchased 4,710 bitcoins using cash. This investment, valued at over $515.7 million, was funded through a $1.3 billion convertible bond sale initiated in March.
The correlation between GameStop’s stock and bitcoin has become evident. As bitcoin’s price fluctuates, GameStop’s shares have shown corresponding movements, introducing cryptocurrency volatility as a significant factor in the company’s share price performance. The company’s substantial bitcoin holdings now represent a significant portion of its market value, potentially overshadowing its operational performance. With the revenue miss and the new bitcoin – buying strategy, GameStop faces a complex situation in the market, and how it will navigate these challenges remains to be seen.
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