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GameStop reported its highest-ever second-quarter operating income of $160.2 million for the 13 weeks ended Aug. 1, according to its <a href="https://www.sec.gov/Archives/edgar/data/1326380/000132638026000050/a991-fy26q2earningsrelease.htm" rel="noopener noreferrer nofollow">earnings release filed with the SEC</a>. 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, <a href="https://www.theblock.co/post/395406/gamestop-didnt-sell-bitcoin" rel="noopener noreferrer nofollow">according to The Block</a> - sit on the balance sheet at $294.1 million, down from $528.6 million at the end of the prior fiscal year.
<a href="https://www.thestreet.com/crypto/politics/iran-makes-a-major-crypto-move-as-u-s-pressure-hits-its-economy" rel="noopener noreferrer nofollow">Related: Iran makes a major crypto move as U.S. pressure hits its economy</a>
GameStop began building its bitcoin position in March 2025, when it announced a <a href="https://www.sec.gov/Archives/edgar/data/1326380/000132638025000022/gme-20250326.htm" rel="noopener noreferrer nofollow">$1.5 billion convertible note offering</a> whose proceeds could be used to buy bitcoin. The approach mirrors the treasury playbook pioneered by Strategy, the former MicroStrategy, which holds <a href="https://cryptobriefing.com/strategy-845050-btc-no-buys-sells/" rel="noopener noreferrer nofollow">more than 845,000 BTC</a>.
<h2 id="record-income-shrinking-sales">Record income, shrinking sales</h2>
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&amp;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.
<h2 id="gamestop-is-now-writing-options-on-its-bitcoin">GameStop is now writing options on its bitcoin</h2>
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, <a href="https://www.sec.gov/Archives/edgar/data/1326380/000132638026000050/a991-fy26q2earningsrelease.htm" rel="noopener noreferrer nofollow">according to the earnings release</a>.
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.
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GameStop's record quarter came with a $75 million Bitcoin loss

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