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.
The video game retailer reported a revenue of $732.4 million in the quarter ended May 3, below the analysts’ estimate of $754.2 million. That represents a 17 percent decrease compared to $881.8 million in Q1 2024, and it can be mainly attributed to the declining sales of physical games.
GameStop showed signs of operational improvement, with its operating margin narrowing from -5.7% to -1.5%, and free cash flow swinging positive to $189.6 million from last year’s negative $114.7 million.
The biggest surprise? GameStop’s bold Bitcoin move. The company bought 4,710 BTC between May 3 and June 10, worth about $516.6 million. This is a significant change, as the company includes Bitcoin in its treasury policy and becomes one of the companies, such as Strategy.
To ride this wave, Bitwise launched the IGME ETF, which tracks GameStop’s performance and aims to profit from its stock volatility and crypto exposure through covered call strategies.
GameStop has experienced recent growth; however, despite its investments in cryptocurrency, the company is under pressure from digital game shops and streaming platforms. However, its move into digital assets suggests a serious reimagining of its future.
GameStop is making heads turn with the retail investor attention and Bitcoin in its treasury, yet whether that will be sufficient to drive long-term growth remains to be determined.
Also Read: CEO Ryan Cohen Speaks on GameStop’s Latest Bitcoin Purchase
