GameStop (GME) shares slipped over 4% in after-hours trading on June 10, 2025, after the company reported weaker-than-expected Q1 revenue despite turning a profit and diving deeper into Bitcoin.
GameStop (NYSE:GME) shares dropped over 4% in the extended hours on June 10, after the company reported weaker-than-expected Q1 revenue despite turning a profit and continuing its focus on Bitcoin.
The video game retailer reported a revenue of $732.4 million in the quarter ended May 3, missing the analysts average estimate of $754.2 million, according to Benzinga. This represents a 17 percent decrease compared to $881.8 million in Q1 2024, mainly driven by the decline in sales of physical games. However, it's a step up from the prior quarter’s revenue of $658.3 million.
On the plus side, GameStop showed signs of improvement with its operating margin narrowing to -1.5% from last year’s -5.7%, while its net loss narrowed to $109.1 million from last year’s net loss of $154.3 million. Moreover, the company’s free cash flow swung positive to $189.6 million from last year’s negative $114.7 million.
The biggest surprise came with GameStop’s bold Bitcoin (BTC) move. The company bought 4,710 BTC between May 3 and June 10 at an average price of $109.4, a significant change as the company includes Bitcoin in its treasury policy and becomes one of the companies such as (NYSE:MSFT) and (NASDAQ:META) to hold the cryptocurrency asset.
To ride this wave, Bitwise launched the IGME ETF (GAMER), which tracks GameStop’s stock performance and aims to profit from its stock volatility and crypto exposure through covered call strategies.
GameStop has seen recent growth and crypto wagers notwithstanding, the company is battling headwinds because of digital game shops and streaming platforms. However, its move into digital assets implies that it is dead serious in reinventing its future.
GameStop is certainly turning heads with the retail investor attention and Bitcoin in its treasury, yet whether that will be enough to drive long-term growth remains to be determined.
Also Read: CEO Ryan Cohen Speaks on GameStop’s Latest Bitcoin Purchase
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
