GameStop's record quarter came with a $75 million Bitcoin loss
Thu, September 10, 2026 at 1:00 AM GMT+3 2 min read
GameStop reported its highest-ever second-quarter operating income of $160.2 million for the 13 weeks ended Aug. 1, according to its earnings release filed with the SEC. The same filing shows a $75 million loss on digital assets and related receivables, reversing a $28.6 million gain in the same quarter last year.
The loss is unrealized. GameStop did not buy or sell digital assets during the quarter, and the filing adds the $75 million back as a non-cash item in its cash-flow statement.
It reflects a mark-to-market decline on holdings the company continues to carry. Those holdings – roughly 4,709 BTC pledged to Coinbase Credit as collateral for an options program, according to The Block – sit on the balance sheet at $294.1 million, down from $528.6 million at the end of the prior fiscal year.
Related: Iran makes a major crypto move as U.S. pressure hits its economy
GameStop began building its bitcoin position in March 2025, when it announced a $1.5 billion convertible note offering whose proceeds could be used to buy bitcoin. The approach mirrors the treasury playbook pioneered by Strategy, the former MicroStrategy, which holds more than 845,000 BTC.
Record income, shrinking sales
Operating income rose to $160.2 million from $66.4 million a year earlier as gross margin jumped to 43.7% from 29.1%. Collectibles sales grew 57% year over year to $356.3 million and now account for 45.1% of net sales, while SG&A expenses fell to $187.1 million from $218.8 million on store closures and the divestiture of GameStop's France operations.
Net sales still fell 18.7% to $790.2 million from $972.2 million. The company attributed the decline primarily to the prior-year launch of the Nintendo Switch 2, along with planned store closures and the France divestiture.
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Net income rose to $298.7 million from $168.6 million, though the figure was lifted by a $166.3 million gain on a derivative asset and a $72.1 million unrealized gain on GameStop's equity investment in eBay – neither from core retail operations.
GameStop is now writing options on its bitcoin
The filing shows the company is doing more than holding.
GameStop generated $18.2 million in proceeds from written options on digital assets in the first half of the fiscal year and booked a $16.1 million gain on those options in the second quarter, according to the earnings release.
GameStop raised its full-year adjusted EBITDA outlook to more than $650 million, up from a target of more than $600 million set in June. It ended the quarter with $5.4 billion in cash, marketable securities and digital assets, plus an eBay stake worth about $4.9 billion.
Related: Analyst warns Bitcoin rally isn't over, here's where money is flowing
This story was originally published by TheStreet on Sep 9, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
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