GameStop achieves record operating income of $160.2 million despite an 18.7% decline in net sales and a $75 million unrealized loss on its Bitcoin treasury holdings.
GameStop reported record second-quarter operating income and raised full-year adjusted EBITDA guidance, but net sales fell and it booked a $75 million unrealized Bitcoin loss.
GameStop's $75 million unrealized loss reflects a mark-to-market decline in its Bitcoin holdings of roughly 4,709 BTC.
GameStop holds an equity stake in eBay that generated a $72.1 million unrealized gain in the quarter.
Coinbase is named as the credit counterparty for GameStop's pledged Bitcoin collateral on its options program.
Strategy is referenced as the pioneer of the bitcoin treasury playbook that GameStop is mirroring.
Nintendo Switch 2's prior-year launch is cited as a factor in GameStop's year-over-year net sales decline.
GameStop reported record second-quarter operating income of $160.2 million, driven by improved margins and cost-cutting measures. However, the company booked a $75 million unrealized loss on its 4,709 BTC holdings, while simultaneously raising its full-year adjusted EBITDA guidance to over $650 million.
The loss is an unrealized, mark-to-market accounting adjustment reflecting the decline in value of the company's 4,709 BTC holdings during the quarter.
GameStop has pledged its Bitcoin to Coinbase Credit as collateral for an options program, which generated $16.1 million in gains during the second quarter.