GameStop’s Bold Crypto Bet: $368M Bitcoin Position Overshadows 14% Revenue Decline as Cash Reserves Surge to $9B

GameStop has stunned markets by revealing a massive $368.4 million Bitcoin and crypto-linked position on its balance sheet, dramatically shifting focus away from a 14% quarterly revenue decline. The video game retailer's liquidity has nearly doubled year-over-year to $9.0 billion, signaling a strategic pivot toward digital asset accumulation even as traditional sales soften. This substantial crypto allocation, disclosed alongside GAAP results showing profits holding above $127 million, positions GameStop as a mainstream corporate leader in cryptocurrency adoption, potentially catalyzing broader institutional interest in Bitcoin treasury strategies.

GameStop cuts expenses and posts stronger operating income

The biggest reason GameStop’s profit held up was lower spending, because SG&A expenses fell to $241.5 million from $282.5 million, operating income rose to $135.2 million from $79.8 million, while adjusted operating income (which strips out impairment and other items) climbed to $147.7 million from $84.4 million.

GameStop’s adjusted net income reached $291.4 million, up from $136.4 million, after excluding impairment, losses tied to cryptocurrencies and related receivables, and other items.

In the United States, GameStop reported net sales of $788.5 million, cost of sales of $492.5 million, and gross profit of $296.0 million.

U.S. SG&A was $165.0 million, split between $124.1 million in store-related costs and $40.9 million in other costs. Asset impairments were $1.1 million, and operating income in the U.S. was $129.9 million.

In Australia, GameStop’s sales were $161.7 million, cost of sales was $107.9 million, gross profit was $53.8 million, SG&A was $44.0 million, store costs were $36.4 million, other costs were $7.6 million, impairments were $2.3 million, and operating income was $7.5 million.

In Europe, sales were $154.1 million, cost of sales was $117.1 million, and gross profit was $37.0 million, which is a surprise.

Below that, the company booked net interest income of $86.0 million, a $151.0 million loss on crypto assets and related receivables, and other income of $6.8 million. Income before income taxes was $77.0 million.

GameStop’s income tax benefit was $50.9 million, while capital expenditures were $6.2 million, with $5.4 million in the U.S. and $0.8 million in Australia.

GameStop turns a full-year loss into a full-year operating profit

For the full fiscal year, GameStop reported net sales of $3.630 billion, down from $3.823 billion in fiscal 2024, as SG&A expenses dropped to $910.2 million from $1.130 billion, which helped flip the operating line from a loss to a profit.

GameStop’s operating income for fiscal 2025 was $232.1 million, compared with an operating loss of $26.2 million the year before.

GameStop’s adjusted operating income was $289.5 million, versus an adjusted operating loss of $26.8 million in fiscal 2024.

The company’s full-year net income came in at $418.4 million, up from $131.3 million, while its adjusted net income rose to $647.4 million from $131.2 million, excluding impairment, losses on crypto.

GameStop’s full-year net interest income was $271.5 million, the loss on crypto and related receivables was $131.6 million, other income was $12.0 million, income before taxes was $384.0 million, income tax benefit was $34.4 million, capital expenditures were $17.5 million, and property and equipment, net stood at $48.3 million, with France again listed as held for sale.

At the end of the report, GameStop said:- “The Company will not be holding a conference call today. Additional information can be found in the Company’s Form 10-K.”

The smartest crypto minds already read our newsletter. Want in? Join them.