Bitcoin Bet or Storefront Shift? GameStop's $6.4B Gamble Unfolds

GameStop Corp. (GME) reported an increase in its Bitcoin holdings for the second quarter, reflecting its ongoing shift toward digital assets as a strategic hedge against inflation. The company disclosed that it had acquired 4,710 Bitcoin units between May 3 and June 10 at prices ranging from $93,399.86 to $111,970.17 per coin. With Bitcoin currently valued at $112,383.77, the company’s holdings have appreciated in value and may positively influence its second-quarter financial results.

The shift to digital assets is part of a broader transformation strategy under CEO Ryan Cohen, who has been steering the company away from its traditional brick-and-mortar video game retail model. According to recent disclosures, GameStop’s cash and marketable securities have grown significantly to $6.4 billion as of the second quarter of 2025, compared to $1 billion at the end of the previous year’s quarter. Cohen emphasized that the company intends to use its $9 billion in cash reserves in areas with “high upside and limited downside,” including Bitcoin as an inflation hedge.

While GameStop has not yet announced a full pivot into a Bitcoin treasury company, it is closely following the model pioneered by MicroStrategy, which has been a major buyer of Bitcoin over the past several years. According to Wedbush Securities analyst Michael Pachter, however, GameStop’s Bitcoin investments are not expected to be a major catalyst for investor enthusiasm. Pachter, who maintains a bearish outlook on the stock, noted that the company’s valuation includes a significant portion of its $12.50 per share in cash and crypto holdings, which might not justify its current stock price.

GameStop’s Q2 results will also highlight its performance in the collectibles and trading card market, a segment that has shown growth amid declining sales in video game hardware and software. Revenue from collectibles in the first quarter reached $211.5 million, representing the only area of year-over-year growth among the company’s three main business segments. The company’s recent partnership with PSA to launch “Power Packs”—blind bags of trading cards—has contributed to this growth. These higher-margin products are helping offset some of the pressure on traditional gaming hardware sales and are seen as a positive step toward improving overall profitability.

Analysts expect GameStop to report second-quarter earnings of 16 cents per share on revenue of $823.25 million, according to data from Benzinga Pro. While the company has seen modest success in the trading card segment and has made a notable move into Bitcoin, it has struggled with consistent revenue growth, missing analyst estimates in seven consecutive quarters. This trend continues to draw attention as investors monitor whether GameStop’s strategic diversification will yield long-term financial stability.

GameStop shares closed at $23.13 on Monday, reflecting a 2.3% increase for the day. The stock is down 25% year-to-date in 2025, with a 52-week trading range from $19.31 to $35.81. The market’s reaction to the company’s recent moves suggests investor interest, though many remain cautious about the long-term viability of its new strategies.