GameStop Corp (NYSE: GME), once a Wall Street darling during the 2021 meme-stock frenzy, is facing intense selling pressure this week, even as it accelerates its Bitcoin buying strategy. On June 11, GME stock dropped by 5.27% during regular trading hours and slumped an additional 11% in after-hours trading, falling to $25.34.
The sharp correction follows the company’s disappointing Q1 2025 earnings report, which failed to meet market expectations and overshadowed its bold cryptocurrency plans.
GameStop Misses Q1 Expectations
GameStop reported Q1 2025 revenues of $732.4 million—below analysts’ projections of $754.2 million and down 17% from $881.8 million in the same period last year. The decline was primarily attributed to continued weakness in physical video game sales, a trend that has challenged the company for years.
Despite the revenue miss, GameStop posted a net income of $44.8 million, reversing a $32.3 million loss from Q1 2024. Operating losses also narrowed significantly to $10.8 million from $50.6 million a year ago. However, the improved bottom line wasn’t enough to buoy investor confidence.
Bitcoin Bet Fails to Boost Investor Sentiment
In a move reminiscent of MicroStrategy’s Michael Saylor, GameStop has added 4,170 Bitcoins to its treasury after raising $1.5 billion via convertible notes in April. The company has now announced plans to raise an additional $1.75 billion, also through a private convertible note offering aimed at “qualified institutional buyers.” An extra $250 million in notes could be issued within 13 days of the initial offering.
These notes, maturing in mid-2032, will carry no regular interest. GameStop said proceeds will be used for general corporate purposes, aligned with its investment policy, including potential acquisitions.
Despite this aggressive push into Bitcoin, GME stock has shed nearly all gains made after last month’s crypto announcement. The market appears more concerned about declining core revenues than optimistic about long-term crypto exposure.
Also Read: GameStop Urged to Invest $5 Billion in Bitcoin – A Bold Move for Financial Growth?
As institutional interest in Bitcoin grows, GameStop is positioning itself as a corporate BTC holder. But with earnings under pressure, the strategy’s success will depend on whether Bitcoin appreciation can outweigh the company’s weakening fundamentals.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
