GameStop Reports Record Operating Income Amid $75 Million Bitcoin Loss
GameStop reported its highest-ever second-quarter operating income of $160.2 million for the period ending August 1, according to an SEC filing. However, this was accompanied by a $75 million unrealized loss on digital assets and related receivables, reversing a previous gain in the same quarter last year. The company did not buy or sell Bitcoin during the quarter; instead, it marked down its holdings as collateral for options trading with Coinbase Credit. GameStop's net sales declined 18.7% to $790.2 million due primarily to store closures and a prior-year Nintendo Switch 2 launch impact. Despite this, collectibles revenue grew by 57%, now representing nearly half of total sales. The company also raised its full-year adjusted EBITDA forecast above $650 million. The firm generated significant gains from options on Bitcoin in the second quarter and ended with over $10 billion in cash, marketable securities, digital assets, and an eBay stake.
Topics: Bitcoin convertible notes digital assets GameStop earnings