GameStop’s revenue dropped by 17% after pivot to BTC

GameStop's Financial Performance: GameStop reported a 17% decline in first-quarter revenue, totaling $732.4 million, while managing to achieve a net income of $44.8 million compared to a loss last year. Despite this financial upside, the stock fell over 3.5% after-hours due to ongoing struggles in its retail business.

Strategic Shifts and Challenges: The company is pivoting towards cryptocurrency investments, having purchased 4,710 bitcoins for $513 million, while simultaneously closing nearly 600 stores and selling its Canadian operations to cut costs. However, it faces challenges as its physical retail sales continue to decline, and there are no clear plans on how to effectively utilize its growing cash reserves.