After the market closes on Tuesday, GameStop releases its second-quarter earnings.
With the original meme stock shifting further away from its conventional brick-and-mortar videogame industry into areas like bitcoin, GameStop Corp. is scheduled to release second-quarter earnings following market close on Tuesday.
Despite revenue that fell short of Wall Street’s estimates, GameStop (GME) recorded a fourth consecutive quarterly profit last quarter. At the same time, the company’s cash and marketable securities hoard increased from $1 billion at the end of the previous quarter to $6.4 billion. The focus is still squarely on this money, and more especially, how GameStop CEO Ryan Cohen intends to spend it.
“GameStop is no longer a financially struggling retailer. It has developed into a slim, lucrative, cash-generating shell with a strong balance sheet,” an X user using the handle @Han_Akamatsu posted on social media. The user continued, “The story has shifted from survival to optionality now,” via social media trading settings.
On Monday, GameStop’s shares increased 2.7%.
The main concern for GameStop, according to @Han_Akamatsu, is “not whether it will fail, but how @ryancohen chooses to deploy the war chest.”
It appears that Bitcoin will play a significant role in GameStop’s future. Just like Strategy Inc. (MSTR), formerly MicroStrategy Inc., GameStop’s board unanimously adopted an upgrade to its investment strategy in March that included bitcoin (BTCUSD) as a treasury-reserve asset.
GameStop, a company based in Grapevine, Texas, revealed its first bitcoin acquisition in May after completing a $1.5 billion bond sale in April.
GameStop revealed plans to increase its debt in June, which may signal that the company could soon make another bitcoin acquisition.
In a rare July interview with CNBC, Cohen stated, “We invested just over $500 million in bitcoin, and I view it as a hedge against inflation and global money printing, and we’ll see what happens.”
The stock has dropped 8.4% since GameStop declared its intentions to use bitcoin following the closing on March 25. In the same time frame, strategy shares have decreased 3.6%, while the price of bitcoin has risen 28.4% and the S&P 500 index SPX has grown 12.3%.
However, the CEO of GameStop denied that the business is a “mini-Microstrategy.” The world’s largest corporate bitcoin holder is Strategy, a software company situated in Tysons Corner, Virginia.
“We have our own unique strategy, and we have a very strong balance sheet – over $9 billion of cash and marketable securities,” Cohen stated. And just like I would with my own money, we will use that money wisely and only pursue opportunities with a lot of upside and little downside. So, when we recognize those possibilities, we’ll take advantage of them.”
The video game retailer is also now identifying stores for closure as part of a store portfolio optimization analysis.
“We’re a much more profitable business – smaller business, less stores, very strong balance sheet,” Cohen stated to CNBC. “We’ve gotten our costs under control, and we’ve changed the business from a reliance on hardware and software to a significant focus on trading cards and collectables generally.”
In light of its findings, GameStop will not host a conference call. Since March 2023, the business has not conducted a conference call to go over its quarterly results.
According to the one analyst that gave FactSet projections, GameStop should record second-quarter earnings of 19 cents per share and maintain its trend of quarterly profits. Compared to the same period last year, when revenue was $798.3 million, it is anticipated that revenue would reach $900 million.
In 2025, GameStop’s stock fell 25.8% while the S&P 500 saw a 10.3% increase.
AMC Entertainment Holdings Inc. (AMC) and GameStop’s shares notoriously surged in 2021 during a meme-stock boom driven by trader Keith Gill, popularly known as Roaring Kitty, and discussion on the WallStreetBets subreddit.
After Gill returned to social media last year and declared himself a “believer” in GameStop, the company’s stock shot up once more. He raised his GameStop investment as well. However, after a mysterious post on X on January 22, Gill has not been active on social media.
