GameStop Stock Falls. Bitcoin Is Just Part of the Story.

GameStop reported third quarter earnings after the closing bell. (Spencer Platt/Getty Images)

Key Points

• GameStop’s third-quarter revenue decreased by 4.5% to $821 million, compared to $860 million in the prior year.
• The company reported third-quarter earnings of 24 cents per share, an increase from 6 cents per share in the year-earlier quarter.
• GameStop’s Bitcoin holdings were valued at approximately $519.4 million at the end of the third quarter.

GameStop shares were falling ahead of the open Wednesday after its third quarter earnings report showed revenue slipped from the same time last year.

The videogame retailer and OG meme stock reported revenue of $821 million and earnings of 24 cents a share. In the year-earlier quarter, GameStop reported earnings of 6 cents a share and revenue of $860 million. The revenue drop amounts to 4.5%.

The stock was down 6% in premarket trading on Wednesday, while S&P 500 futures slipped 0.1%. GameStop shares have been climbing recently, rising more than 2.5% so far this month, though they are down 26% this year.

GameStop reported a 22% revenue gain in the second quarter versus a year earlier, bouncing off a 17% drop in revenue in the April quarter.

GameStop has also been investing in crypto, buying Bitcoin earlier this year. Its Bitcoin holdings had a value of $528.6 million at the end of the second quarter. Its holdings were valued around $519.4 million at the end of the third quarter.

Write to Liz Moyer at liz.moyer@barrons.com