GameStop (GME) shares tanked by 4% on Wednesday after its latest earnings report, with Q3 highlighting the company’s failed Bitcoin investments. While its operating income of $41.3 million beat estimates, its core retail sales missed Wall Street’s expectations by a wide margin. Its Bitcoin holdings also contributed a $9.2 million unrealized loss to the quarter’s financials.
Additionally, GameStop’s struggles to adapt to the shift towards digital game downloads and streaming were highlighted, with hardware and accessory sales declining by 12%. The rise of digital buyers in gaming in the late 2010s was a scary sight for GameStop and physical game retailers, and it could continue to their ultimate demise of physical stores in the coming years.
Earlier this year, the gaming retailer announced that it would begin investing in Bitcoin and also announced a new funding plan for the venture. However, the Bitcoin crash over the last few months has made that funding plan and BTC investment tank in value. GameStop’s Bitcoin holdings of 4,710 BTC, valued at $519.4 million at quarter’s end, were acquired earlier in the year using proceeds from a massive $1.3 billion debt offering. At press time, GME shares have fallen over 22% since the Bitcoin initiative was announced.
GameStop (GME) currently trades at $22, however, Wall Street experts forecast a further decline in 2026. According to Yahoo Finance and StockAnalysis, only one analyst is covering the stock, Michael Pachter at Wedbush, and he holds a “Sell/Underperform” rating with a 12‑month price target of $13–$14. This implies a roughly –41% downside from current levels.