GameStop Lost $151M on Bitcoin - Cohen Plans Major Acquisition

GameStop released its Q4 fiscal year 2025 financial results, and the main story isn't the 14% revenue decline - it's the significant losses from the company's Bitcoin strategy. The firm that announced adding Bitcoin to its treasury reserves a year ago reported $151 million in crypto-related losses in a single quarter. At the same time, CEO Ryan Cohen has shifted focus to what he calls a "transformational" corporate acquisition.

Q4 FY2025 Financial Results

GameStop ended the fourth quarter with revenue of $1.104 billion, down 14% from $1.283 billion a year earlier. Despite the sales decline, the company significantly improved operational efficiency. Earnings per share came in at $0.49, comfortably beating the analyst consensus estimate of $0.37. Operating income rose to $135.2 million from $79.8 million in the prior year.

Including, collectibles grew to 33.1% of quarterly sales as GameStop continues diversifying away from traditional video game retail. The total liquid asset balance nearly doubled year-over-year to a record $9.01 billion, making the company one of the most cash-rich players in the consumer sector.

Bitcoin Treasury: $151M in Losses

The most discussed aspect of the report was GameStop's Bitcoin position. The company holds 4,710 BTC, valued at $368.4 million at the end of Q4 (January 31, 2026). Compared to $519.4 million at the end of Q3, this represents a $151 million decline - one of the largest quarterly losses among publicly traded companies holding cryptocurrency reserves.

The loss structure proved more complex than a simple price decline. GameStop employed a covered call strategy against its Bitcoin holdings, adding volatility to the bottom line:

• Realized loss from covered calls: $71.8 million - the company was forced to sell pledged BTC collateral when options contracts were exercised
• Unrealized loss on digital asset receivables: $59.7 million, revaluation of obligations tied to digital assets
• BTC remeasurement loss: $0.1 million - minimal fluctuation on remaining holdings

In short, GameStop recognized $131.6 million in digital asset losses for fiscal year 2025, compared to zero in the prior year when the company had no cryptocurrency on its balance sheet. All 4,710 BTC were acquired in May-June 2025, shortly after the board's unanimous vote to add Bitcoin to the treasury policy.

Cohen Chooses Acquisitions Over Bitcoin

GameStop CEO Ryan Cohen held no earnings conference call and provided no forward guidance - consistent with prior quarters. However, in February 2026, he made a significant statement, calling a planned corporate acquisition "way, way, way more compelling than Bitcoin." Cohen indicated the company is seeking a large publicly traded consumer company for a "transformational" deal.

According to analysts, eBay is the most likely acquisition target. With $9.01 billion in liquid assets, GameStop has the financial firepower for a major transaction. Cohen hasn't ruled out liquidating the Bitcoin position to fund the deal, and the transfer of all crypto assets to Coinbase Prime in February 2026 was widely interpreted as preparation for a potential sale.

GameStop shares trade at $23.03, up 11.69% year-to-date. Investors appear far more interested in the potential megadeal than concerned about Bitcoin losses.

Signal for Corporate Bitcoin Strategies

GameStop's situation has become another test case for corporate Bitcoin treasury strategies. Unlike Strategy, which holds 738,000 BTC and remains unconditionally committed to its crypto thesis, GameStop has taken a pragmatic approach, treating Bitcoin as a liquid reserve rather than an ideological position.

With Bitcoin trading around $71,300 and the Fear and Greed Index at 14 (extreme fear), the value of GameStop's 4,710 BTC continues to decline. If Cohen ultimately decides to sell the crypto holdings to fund an acquisition, it would create additional selling pressure and send a negative signal to other corporate Bitcoin holders. At the same time, it serves as a reminder that corporate crypto adoption doesn't guarantee long-term loyalty - businesses will always seek the most efficient use of capital.