GameStop fell short of analysts’ projections in the third quarter of 2025, causing shares to drop by over 4% on Wednesday, with declining core sales and lower Bitcoin gains contributing to the results.
The company’s Q3 revenue reached $821 million, missing the analyst expectations of $987.29 million, as reported by Seeking Alpha.
According to GameStop’s Q3 report, the company holds 4,710 Bitcoin (BTC), with unrealized losses of $9 million during the quarter; however, its BTC position is still up $19.4 million for the year.
The company also underperformed analysts’ expectations in Q1, reporting a revenue of about $732 million, below the estimated $754 million.
Despite adopting a BTC treasury strategy in March, GameStop continues to face challenges. The move initially boosted the stock by roughly 12% to $35 per share, but those gains were quickly lost.
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GameStop finds little relief from its Bitcoin treasury strategy
GameStop’s business model relies heavily on physical video games and the resale of used games, both of which are affected by the decline of physical media.
In April, the company raised $1.5 billion to fund Bitcoin purchases and acquired 4,710 BTC in May as part of its strategic shift to a digital asset treasury company.
However, stocks fell by 11% the day after the treasury pivot announcement, as investors expressed skepticism about the digital asset strategy.
In July, GameStop CEO Ryan Cohen stated that both crypto and BTC serve as hedges against inflation and hinted at plans to allow crypto payments at its stores.
“The ability to actually use crypto within transactions is an opportunity we are exploring,” Cohen remarked.
He also noted that the company is working on reducing its dependence on physical hardware and game sales due to rising costs, focusing more on collectibles like trading cards.
The decline in GameStop’s stock is part of a more extensive downturn affecting digital asset treasury companies, attributed to market saturation and investor hesitance, according to Standard Chartered.
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