Bitcoin News Today: Investors Bet on Bitcoin, Trading Cards to Rescue GameStop’s Fading Game Business

GameStop Corporation (GME) is set to report second-quarter financial results later this week, with investors and analysts closely watching whether its foray into Bitcoin and trading cards can offset continued challenges in its core video game business. The company has shown modest growth in collectibles and improved profitability in recent quarters, but lingering questions remain about the long-term sustainability of its strategic shifts.

Analysts project GameStop to report Q2 revenue of $823.25 million, slightly higher than the $798.30 million recorded in the same period last year, according to Benzinga Pro data. However, the company has consistently missed revenue expectations in recent quarters, failing to meet estimates in seven consecutive quarters and eight out of the past 10 overall. On the earnings per share (EPS) front, analysts are forecasting 16 cents, a marked improvement from just 1 cent in the prior year's Q2. GameStop has exceeded EPS estimates in two consecutive quarters and three of the last four, although it has only beaten EPS forecasts in six of the past 10 quarters overall.

Wedbush Securities analyst Michael Pachter, one of the few remaining analysts covering the stock, has maintained a bearish outlook on GameStop. He argues that the company's Bitcoin investments, while generating some short-term attention, are unlikely to serve as a catalyst for a broader turnaround. Pachter has assigned an "Underperform" rating to the stock with a $13.50 price target, noting that the majority of GameStop's valuation currently stems from its cash, securities, and cryptocurrency holdings. “It is difficult to understand why any investor would be willing to pay more than 2x cash value for the possibility of GameStop converting more of its cash into Bitcoin,” Pachter stated.

Despite the skepticism, GameStop has seen some traction in the trading card market, which Pachter described as the only recent business initiative showing modest success. The company has formed strategic partnerships with PSA, a leading trading card grading company, and launched a new line of blind bag-style "Power Packs." In Q1, collectibles revenue surged to $211.5 million, the only one of the company’s three main business segments to show year-over-year growth. This growth has helped offset declining sales in video game hardware, accessories, and software.

GameStop also revealed in recent weeks that it had purchased 4,710 Bitcoin units between May 3 and June 10. The company paid between $93,399.86 and $111,970.17 per Bitcoin, which has since appreciated to $112,383.77. The value of the Bitcoin holdings has increased, potentially providing a financial boost for the quarter. CEO Ryan Cohen has clarified that GameStop does not intend to become a Bitcoin treasury company but rather to use Bitcoin as a hedge against inflation.

As the company prepares for its Q2 earnings report, investors will also be monitoring whether GameStop made additional Bitcoin purchases and how it plans to utilize its $9 billion in cash. Cohen emphasized that the company aims to deploy its capital in areas offering high upside with limited downside.

GameStop stock closed Monday at $23.13, up 2.3%, with a 52-week range of $19.31 to $35.81. However, the stock has declined by 25% year-to-date in 2025, reflecting continued uncertainty among investors.

Source: [1] GameStop Q2 Preview: Will Bitcoin, Trading Cards Overshadow Video Game Business (https://www.benzinga.com/trading-ideas/previews/25/09/47554153/gamestop-q2-preview-will-bitcoin-trading-cards-overshadow-video-game-business)