GameStop’s Bitcoin Bag Gets Lighter as BTC Struggles Above $90K

Group 1 - GameStop's Bitcoin investment of $500 million has increased to $519.4 million, reflecting a $19 million unrealized profit after experiencing a prior loss of $9.4 million [1] - The company's Q3 adjusted earnings per share were $0.24, surpassing expectations of $0.20 and significantly higher than last year's $0.06, although revenue fell to $821 million, a 4.6% year-over-year decline [3] - Cost-cutting measures contributed to improved earnings, with SG&A expenses reduced to $221.4 million from $282 million last year, resulting in $52.1 million in adjusted operating income [4] Group 2 - Bitcoin's volatility has impacted GameStop's treasury strategy, particularly following a significant market crash that affected leveraged crypto trades [3] - The current market conditions show that short-term holders of Bitcoin are experiencing substantial losses, which is contributing to selling pressure and hindering Bitcoin's price recovery above $90,000 [5] - Institutional interest in Bitcoin remains strong, with $151 million in BTC spot ETF inflows reported [6]