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GameStop’s Q2 loss narrowed to $18.5 million after booking $528.6 million in Bitcoin, producing an unrealized gain of $28.6 million. GameStop’s Bitcoin holdings materially boosted assets even as revenue fell to $673.9 million, driven by weaker hardware and software sales.
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Net loss narrowed to $18.5M on Bitcoin revaluation
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Revenue declined to $673.9M due to softer hardware and software sales
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GameStop purchased 4,710 $BTC for $500M; holdings valued at $528.6M at quarter-end
GameStop Q2 loss narrows as Bitcoin holdings boost assets; revenue slips. Read concise financials, Bitcoin exposure, and management moves. View key takeaways and next steps.
What is GameStop’s Q2 financial result?
GameStop Q2 loss narrowed to a net loss of $18.5 million for the quarter ended August 2, down from a prior-quarter profit. The company reported revenue of $673.9 million, lower than $732.4 million previously, as hardware and software sales declined.
How did GameStop’s Bitcoin holdings affect its balance sheet?
GameStop purchased 4,710 $BTC for $500 million during the quarter. At quarter-end the holdings were valued at $528.6 million, producing an unrealized gain of $28.6 million that helped narrow the net loss.
The company used Coinbase pricing to measure fair value each reporting period, according to the company filing. Bitcoin’s ~18% price increase since early May supported the carrying value of the position.
Why did revenue decline in Q2?
Revenue slipped to $673.9 million, down from $732.4 million the prior quarter. Management cited softer hardware and software sales as primary drivers, while collectibles — trading cards and pop-culture merchandise — continued to account for nearly a third of sales.
When did GameStop make its large Bitcoin purchase?
GameStop disclosed the purchase during the quarter ended August 2. The company bought 4,710 $BTC as part of an investment policy adopted earlier in the year and financed balance-sheet changes with previous capital raises, including a $2.7 billion convertible bond sale.
Frequently Asked Questions
Did GameStop report operating improvements?
Yes. Operating losses narrowed to $9.2 million from $10.8 million in the previous quarter, driven by lower selling, general, and administrative costs. The improvement was modest but contributed to the smaller net loss.
