What Will GameStop Do on the Crypto Side When Its Third-Quarter Balance Sheet Is Hurting?
What will Gamestop do on the crypto side when Its third-quarter balance sheet Is hurting? US video game retailer GameStop has announced that it is shifting its focus to crypto-related businesses. The company made the move after posting a loss of nearly $95 million in the third quarter. In addition, GameStop has laid off many of its digital resources teams.
According to Q3 2022 Gamestop Corp. In an earnings conference call, Matt Furlong, CEO of GameStop, explains that the company has managed to reduce its exposure to cryptocurrencies during the year. Furlong also said that the company currently does not have a balance sheet on any label. Like many other crypto-enthusiasts who have recently announced their position due to the lack of funds facing the Bahamas’ FTX crypto exchange, GameStop CEO believes that there are strong prospects for the asset digital has been around for a long time.
Furlong said, “While we continue to believe that there is a long-term potential for digital assets in the gaming world, we are not investing in the risk of shareholders in this space, ” said Furlong.
GameStop’s leadership in the crypto industry
Unlike the current situation, GameStop started this year with enthusiasm for digital assets, non-fungible tokens (NFT) and many other Web3.0 applications.
In March, GameStop leveraged the Ethereum-based Layer 2 protocol Loopring as the underlying system for its NFT market. The choice of protocol is related to “the need for speed, cost and security for society”.
Shortly after that, the American video game retailer released a non-Ethereum-based wallet as a web browser.
Players can use the wallet to store, send, receive and use cryptocurrencies and NFTs in a seamless application without leaving their web browser. In addition, the wallet gave players complete freedom for their money.
However, GameStop started to see disappointment in the digital goods sector after its second quarter earnings report. According to the report, the company lost hundreds of millions, attributed to a change in management. In return, GameStop partnered with the US branch of FTX, now bankrupt. Now, GameStop has decided to focus more on collectibles, games, and second-hand items.
The company remains focused on NFTs and, according to a recent filing with the Securities and Exchange Commission (SEC), it is also “pursuing and expecting to continue to pursue other businesses in strategic plan combined with digital assets and blockchain technology”. “
