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

GameStop, the prominent video game retailer, recently revealed a significant foray into the realm of cryptocurrency, acquiring 4,710 Bitcoin between May 3 and June 10, 2025. The acquisition, valued at approximately $516.6 million based on current market prices, signals the company’s burgeoning interest in digital assets and forms part of its evolving treasury strategy.

Moreover, the revelation coincided with the release of GameStop’s first-quarter financial results for 2025, which painted a mixed picture of the company’s performance and elicited varied reactions from investors.

GameStop Stacks Bitcoin in First Quarter

The first-quarter earnings report showcased some encouraging signs of progress. Earnings per share (EPS) reached $0.09, surpassing analysts’ projections of $0.04. Furthermore, the company’s operating margin improved from -5.7% in Q1 2024 to -1.5% in Q1 2025, indicative of enhanced cost control measures. A notable turnaround was also observed in free cash flow, which surged to $189.6 million, a stark contrast to the negative $114.7 million recorded in the previous year.

However, the report also revealed that GameStop’s revenue of $732.4 million fell short of Wall Street’s expectations of $754.2 million. This revenue miss, coupled with the persistent challenges posed by the increasingly competitive gaming industry, particularly the proliferation of digital gaming and streaming services, contributed to investor apprehension.

Although GameStop is generating revenue, it faces a challenging road ahead due to the rise of online options. The company is exploring new ways to generate revenue by investing in assets such as Bitcoin. This indicates that they are willing to adapt to the times and explore new ways to grow.

Initial Bitcoin Strategic Treasury Pull

In March, CoinTab reported that GameStop revealed plans to raise $1.3 billion by selling special bonds to select investors. This will give them more money to buy Bitcoin. They sold $1.3 billion in bonds that will be paid back in 2030 and without any interest.

Additionally, Bitwise Asset Management introduced the Bitwise GME Option Income Strategy ETF (IGME), the first ETF to focus specifically on GameStop. This ETF aims to capitalize on the stock’s fluctuations and capitalize on the growth opportunities presented by its digital asset investments. By employing a covered call strategy, the ETF seeks to generate income while also enabling investors to participate in GameStop’s Bitcoin holdings.

After announcing its first-quarter earnings, GameStop’s stock price went down by over 4% in after-hours trading on June 10, 2025. Even though the company made a profit for the fourth quarter in a row, the fact that it did not make as much money as expected made investors worried.

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