GameStop partners with FTX.US following disappointing Q2 2022 financial results

GameStop, a major retailer of video games, announced a partnership with FTX.US, the US division of the well-known bitcoin exchange FTX. The former will start offering FTX gift cards in a few stores as part of the deal.

The agreement will try to connect GameStop’s customers to the FTX US community and the cryptocurrency services it offers, according to a recent announcement from the American video game store. In the United States, GameStop will take over as the exchange’s main retail partner. Additionally, it will roll out FTX gift cards in a few select stores around the nation. The agreement’s financial details, however, were not made public.

GameStop reports disappointing Q2 2022 financial results

Apart from the collaboration, GameStop reported disappointing financial results for the second quarter of 2022. After total sales decreased to $1.14 billion, it saw a decline in its cash balance. It lost $108.7 million, or 36 cents per share, in total. In contrast, that amount was $61.6 million the previous year.

The firm’s instability was made worse by the changes made at the leadership last month. Mike Recupero, the chief financial officer, was fired by GameStop, and some of the staff members in that division were also let go. Diana Jajeh, the head of accounting, was hired as the new CFO shortly after. Although CEO Matt Furlong thinks the adjustments will strengthen the company, the road ahead may be difficult. The announcement reads:

“Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time. This said, we believe GameStop is a much stronger business than it was 18 months ago… We’re going to retain a strong focus on cost containment and continue promoting an ownership mentality across the organization.”

At the time of writing, the company’s shares are trading at around the $24 zone, significantly below their all-time high levels from the start of 2021. 

A few months later, GameStop launched its highly anticipated NFT market, which was built on the Ethereum layer 2 network Loopring L2. It has about 250 collections and about 54,000 different NFTs. Interestingly, as TheCoinRise reported, the newly-launched marketplace earned $45,000 in the first 24 hours of the launch.