GameStop Reports Record Operating Income Amid $75 Million Unrealized Bitcoin Loss
GameStop reported a record second-quarter operating income of $160.2 million for the period ending August 1, according to its SEC filing. However, this was accompanied by an unrealized loss of $75 million on digital assets and related receivables, reversing last year's gain of $28.6 million. The company did not buy or sell Bitcoin during the quarter; instead, it marked down its holdings—approximately 4,709 BTC pledged to Coinbase Credit—as collateral for an options program. Despite a decline in net sales by 18.7% year-over-year due to store closures and divestitures like GameStop's France operations, gross margin improved significantly from 29.1% to 43.7%. Collectibles accounted for nearly half of the company’s revenue at $356.3 million, up 57% compared to last year. GameStop also raised its full-year adjusted EBITDA outlook above $650 million and ended the quarter with over $10 billion in cash, marketable securities, digital assets, and an eBay stake worth about $4.9 billion.
