GameStop's (GME) Newest Quarterly Report Came Crashing Down, and Not Even a $516 Million Bitcoin Bet Could Temper the Blow

On June 10, 2025, GameStop's (GME) newest quarterly report came crashing down, and not even a $516 million Bitcoin bet could temper the blow. While the numbers flashed

GameStop (NYSE:GME) shares slid on Friday as the beleaguered retail giant's first quarter missed expectations and the battered stock now trades at a 16% premium to the average price target.

What Happened: GameStop posted a smaller-than-expected first-quarter loss and revenue that missed estimates. The video game retailer also disclosed that it now holds $516 million in Bitcoin (BTC), an investment that was made in the spring and has since lost a portion of its value amid the cryptocurrency downturn.

Here's a closer look at the key takeaways from GameStop's earnings report:

* Earnings: GameStop's first-quarter earnings per share are reported to be $0.44, coming in above the Wall Street estimate of $0.21. A year earlier, GameStop had reported an EPS loss of $0.67.

* Revenue: The company's revenue is stands at $732.4 million, which is below the anticipated $787.18 million and shows a decrease of 17% from the previous year.

* Key Highlights: GameStop shares fell 4% in after-hours trading, erasing weeks of meme-fueled optimism and leaving investors to ponder if the company's much-hyped Bitcoin shift is just another sideshot in a saga full of twists.

Later this spring, CEO Ryan Cohen surprised markets with the news that the firm had purchased 4,710 Bitcoin, which is half-billion dollars' worth. The news was greeted with praise by r/WallStreetBets and crypto Twitter, where memes like "GME = BTC 2.0" and rocket emojis populated social feeds. For a brief moment, it seemed GameStop had a new narrative: if selling video games doesn't work, maybe you can ride the next digital gold rush. But the quarterly results made all too obvious, Bitcoin can't repair what needs fixing on its own.

Physical game sales, which remain the backbone of GameStop's business, dropped 23% from the same period a year earlier. The firm did deliver a net profit of $44.8 million - a reversal of last year's, but analysts were quick to note that this was achieved through deep cost-cutting, and not organic growth. The core business of the company is also continuing to fall, and the Bitcoin buy, although headline-grabbing, has only served to associate the fortunes of the company even more closely with the volatility of the crypto world.

Institutional investors were looking at the numbers with a bleak eye. Short interest in GameStop remains at an all-time high of 28.5% of the company's available shares, and the stock's beta vs. Bitcoin has exploded to 0.72, so now every crypto pullback drags GME along with it.

Bitwise introduced a new ETF this week - IGME, which allows investors to place bets on GameStop volatility while being covered with Bitcoin calls. The ETF launch was met with interest but not much excitement, as most traders are still holding their breath to see whether a meme stock can become a crypto giant or if this is just another installment of hype over substance.

According to our GME prediction, the stock price will decline to $25.93 by July 10, 2025, by 14.13%. We point out that GME is 16% above their assessment of fair value, and volatility is high. With the dust settled, the question now is: will GameStop fashion itself anew in the era of crypto, or will it be forever relegated to a cautionary example of meme mania and missed opportunity? For the moment, at least, the market's judgment is clear - Bitcoin might have bought GameStop some time, but it hasn's bought a turnaround.