GameStop Purchases 4,710 Bitcoin Despite Weak Q1 Earnings

Highlights:

• GameStop buys 4,710 Bitcoin worth $513 million, adding BTC to its treasury reserves.
• Q1 earnings show higher profits, but revenue drops 17% amid weak game sales.
• Bitwise launches GameStop-focused ETF, reflecting investor interest in crypto-driven strategies.

GameStop Corp (GME) revealed it purchased 4,710 Bitcoin worth approximately $513 million between May 3 and June 10. The announcement was made alongside mixed first-quarter results which highlights notable operational progress despite a drop in overall revenue.

$GME JUST IN 🚨: “GameStop purchased 4,710 Bitcoin between May 3, 2025 and June 10, 2025 for cash.”

This means Bitcoin was not part of Q1’s balance sheet or earnings. It’ll be recognized in Q2 FY2025.

No Bitcoin on the Balance Sheet. pic.twitter.com/IEA9X7ZISM

— Han Akamatsu 赤松 (@Han_Akamatsu) June 10, 2025

The company had earlier said it wanted to follow companies like MicroStrategy, which has also made big Bitcoin investments. Over 80 other public companies, including Trump Media, have also started doing the same.

Earlier this year, GameStop’s board approved a new investment plan that officially added Bitcoin to the company’s list of reserve assets. The purchase follows a March decision by GameStop’s board to adopt Bitcoin as part of its treasury reserve strategy. While the company did report better earnings, the stock didn’t rise much, suggesting that some investors remain concerned about its overall direction.

GameStop Earnings Disappoint Investors

GameStop, the video game retailer, shared its Q1 results for the period ending May 3. The company brought in $732.4 million in revenue, which was below the $754.2 million analysts expected. It was also a 17% drop from $881.8 million in the same quarter last year, mainly due to weak physical game sales. Sales in its hardware and accessories section which includes both new and used games fell by 32%. 

However, GameStop showed stronger profits this time. It reported a net income of $44.8 million, turning around from a $32.3 million loss last year. Operating losses also improved, shrinking from $50.6 million to $10.8 million, showing the company is managing its costs better. GameStop’s stock declined more than 3.5% in after-hours trading yesterday, slipping to just above $29, based on Google Finance data.

While GameStop is making a profit, it’s still facing tough competition in the gaming industry, especially as more players switch to digital downloads and streaming. Still, the company is trying to grow by exploring new ways to make money.

GameStop’s Bitcoin Move Sparks New Bitwise ETF

Bitwise Asset Management also introduced a new ETF focused on GameStop, called the Bitwise GME Option Income Strategy ETF (IGME), making it the first of its kind. This ETF aims to benefit from GameStop’s recent move into Bitcoin by focusing on the stock’s ups and downs and its potential growth from digital asset investments.

The fund is designed to give investors income from GameStop’s stock volatility through covered call strategies, while also offering potential gains from the company’s Bitcoin holdings. Jeff Park from Bitwise said IGME was made to show how regular investors now see GameStop as part of the crypto space because of its new direction.

Park stated:

“IGME gives investors the option to invest in an option income ETF based on an equity that is at the confluence of retail investor prominence, a fundamental business earning revenue, and the use of digital assets.”

GameStop is embracing bitcoin; we built an income-generating ETF designed to capture that hype and turn it into yield.

Introducing $IGME: The first option income ETF capitalizing on investor interest in @gamestop and their adoption of bitcoin as a treasury asset.

As the fourth… pic.twitter.com/EHaXX9PK7X

— Bitwise (@BitwiseInvest) June 10, 2025