GameStop reported a significantly smaller net loss in the second quarter, supported by an unrealized gain of $28.6 million in Bitcoin. The company also recorded higher sales and liquidity compared to last year, a development with implications for investors and digital asset operators. According to the earnings release, part of the improvement is due to the accounting impact of digital assets.
Results and Bitcoin Impact
GameStop posted net sales of $972.2 million in the second quarter, a 21.8% increase from $798.3 million in the same period of 2024.
Profitability improved sharply: the report shows a net income of $168.6 million compared with $14.8 million in Q2 2024. This result was partly driven by an unrealized gain of $28.6 million from Bitcoin, according to the SEC filing.
Selling, general, and administrative expenses fell to $218.8 million from $270.8 million, a 19.2% reduction that contributed to the positive earnings adjustment.
Liquidity, Balance Sheet, and Holdings
Digital assets on the balance sheet are complemented by a cash and equivalents position of $8.7 billion, up from $4.2 billion a year earlier.
The Bitcoin purchase, announced on May 28, 2025, leaves GameStop with holdings valued at $528.6 million at the end of the quarter, explaining the unrealized gain reported.
Strategy and Risks
Ryan Cohen highlighted that GameStop is transforming into a technology company focused on gaming, collectibles, and blockchain, and that the Bitcoin investment diversifies the treasury. Unlike purely operational gains, the accounting impact of digital assets accounts for much of the quarterly improvement.
Analysts cited in the filings are divided on the sustainability of this strategy and warn of volatility and liquidity risks associated with holding cryptocurrencies in the corporate treasury.
The inclusion of Bitcoin on the balance sheet has practical implications for the market:
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Volatility risk: the $528.6 million valuation can fluctuate significantly, affecting future quarterly results.
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Treasury management: the $8.7 billion in liquidity increases strategic options, including financing or acquisitions.
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Strategic signal: the recovery in sales and cryptocurrency exposure indicates a shift in the risk-return profile for institutional investors.
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Regulatory and accounting oversight: changes in value must be reflected in financial statements and future audits.
Conclusion
At the close of the second quarter, GameStop reported Bitcoin holdings valued at $528.6 million and an unrealized gain of $28.6 million. These factors contributed to a reduction in net loss, and the market will closely monitor the strategy in upcoming quarters to assess its sustainability and associated risks.
