GameStop Shares Fall as BTC Holdings Decline in Value, Company Signals Possible Sale

This week, dropped more than 5% later than the company said that the value of its BTC assets fell by $9.2 million in the third quarter. The store holds about 4,710 BTC, which it bought for about $512 million between ahead May and mid-June. As of November 1, the portfolio was worth $519.4 million. 

This is a drop from previous highs, as BTC’s price fell from more than $122,000 to roughly $110,000 in October, when a $19 billion liquidation cascade occurred on October 10. Company leaders have said they are willing to trade some of the stockpile, which may lock in profits even though they have just lost money. 

There were no transactions in the quarter, but the impairment made the market nervous. Shares fell 30% from their May highs around $35 and traded at $23.35 before earnings, underscoring the volatility of crypto exposure.

This news shows that GameStop is aggressively moving towards digital assets as a way to make money, just like other companies like .

Earnings in Q3 Showed Strength Despite Sales DIP

Revenue to $821 million, 4.5% below the $860 million it made the year before and 16.8% below the $987.3 million it was expected to make. But profitability improved significantly, with net income rising to $77.1 million from a deficit the year before and adjusted EPS rising to $0.24, which exceeded the $0.20 expectation.

EBITDA jumped 675% to $64.4 million, operating margins went from -2.9% to positive 5%, and free cash flow margins went up to 13%. Collectables now make up about a third of revenue, which assists make up for drops in core video game gear and software during streaming difficultys.

GameStop didn’t provide investors any forward guidance or hold an analyst conference call, so they had to figure out what its transformation strategy meant.

More Pressure on The Crypto Market Mount

GameStop’s difficultys are similar to those of companies that own BTC. Metaplanet, the second-largest public BTC accumulator, went from making $600 million to losing $530 million by ahead December, but it did bounce back a little. 

Analysts say the tension stems from corrections later than “Uptober,” when BTC dropped 21% over 90 days to $90,000 lows. “The crypto winter has hurt other corporate ” experts say, because high purchase costs are eating away at equity cushions beyond $100,000 limits. 

A bearish mood remains strong before any “Santa Claus rally,” and projections have been cut following liquidations. GameStop’s market cap of $10.46 billion shows the business is strong, but BTC’s weight raises questions about how well it manages risk. 

BTC sales could add liquidity for purchasebacks or pivots, but timing is crucial when conditions are volatile. This story shows the risks for stores that mix old-fashioned retail with risky crypto investments, like GameStop is trying to do by expanding beyond its physical shopfronts.