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GameStop Tops Q2 Estimates, Reveals $528.6 Million in Bitcoin and a Special Warrant Dividend

A new warrant distribution gives existing holders a non-dilutive option that could bring in up to $1.9 billion if exercised.

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Is GameStop trying to be the next MicroStrategy with its Bitcoin bet?
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Overview

  • GameStop reported adjusted earnings per share of $0.25 on revenue of $972.2 million, beating forecasts and rising 22% year over year.
  • The company acquired 4,710 bitcoin in the quarter for about $500 million, valuing the holdings at $528.6 million with $28.6 million in unrealized gains at quarter end.
  • Shareholders of record on Oct. 3 will receive one tradable warrant for every 10 shares, with each warrant exercisable at $32 and expected to trade on the NYSE as GME WS until Oct. 30, 2026.
  • Management said the warrants could raise roughly $1.9 billion if fully exercised, offering the company additional flexibility without immediate dilution for current holders.
  • GameStop ended the quarter with $8.7 billion in cash, cash equivalents and marketable securities, reported stronger hardware and collectibles sales alongside weaker software, and saw shares rise in after-hours trading.