GameStop narrowed its quarterly loss after booking $528 million of Bitcoin on its balance sheet, a move that ranks among the largest corporate wagers on the crypto since Strategy’s headline-grabbing buys.
The Grapevine, Texas-based company reported a net loss of $18.5 million for the quarter ended August 2, compared with a $44.8 million profit in the prior three months.
Revenue slipped to $673.9 million from $732.4 million in the previous quarter, weighed by declines in hardware and software sales.
GameStop disclosed that it purchased 4,710 BTC during the quarter at a cost of $500 million, in line with an investment policy adopted earlier this year.
The holdings were valued at $528.6 million at quarter-end, generating an unrealized gain of $28.6 million. The company said it uses Coinbase pricing to measure fair value each reporting period, its filing showed.
The addition of Bitcoin places GameStop among a small but growing group of publicly traded firms that have diversified into digital assets, exposing their financial statements to swings in crypto markets.
Bitcoin‘s price has risen about 18 since early May, helping bolster the carrying value of GameStop’s holdings.
The retailer has been reshaping its finances under Chairman Ryan Cohen, raising cash through a $2.7 billion convertible bond sale earlier this year and divesting international units in Canada and France.
GameStop ended the quarter with $6.1 billion in cash and equivalents, excluding its digital assets.
Operating losses narrowed to $9.2 million from $10.8 million in the previous quarter, aided by lower selling, general, and administrative costs.
Collectibles, including trading cards and pop-culture merchandise, remained a bright spot, accounting for nearly a third of sales.
Shares of GameStop were up 1.5 on the day and as much as 5.7 to $24.94 in after-hours trading following the release.
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