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.
How large are GameStop’s cash and equivalents excluding digital assets?
GameStop ended the quarter with $6.1 billion in cash and equivalents, excluding digital assets. The company also divested international units in Canada and France as part of its capital strategy.
Summary Table: Q2 vs Prior Quarter
| Metric | Q2 (ended Aug 2) | Prior Quarter |
|---|---|---|
| Net income (loss) | $ (18.5) million | $44.8 million profit |
| Revenue | $673.9 million | $732.4 million |
| Operating loss | $9.2 million | $10.8 million |
| Bitcoin holdings (carrying value) | $528.6 million (4,710 BTC) | — |
Key Takeaways
- Bitcoin boosted balance sheet: An unrealized gain of $28.6M from $528.6M in Bitcoin helped reduce the reported net loss.
- Revenue pressure persists: Declines in hardware and software sales pushed revenue down to $673.9M.
- Cash position remains strong: $6.1B in cash and equivalents (excluding digital assets) supports strategic flexibility.
Conclusion
GameStop’s narrower Q2 loss reflects the material impact of its Bitcoin holdings and modest operating improvements. While revenue trends show continued pressure in core product categories, the company retains substantial liquidity and a diversified balance-sheet profile. Expect investors to monitor Bitcoin valuation swings and retail sales trends in the coming quarters. COINOTAG will update coverage as official filings and management commentary are released.
