February 5, 2023

GameStop stops investing in cryptocurrencies

Article reading time:
1 min.

GameStop stops investing in cryptocurrencies

US gaming retailer GameStop has announced that it will no longer invest in digital assets, focusing on non-fungible tokens and blockchain.

Game retailer GameStop has announced that it is notplans to invest more resources, neither human nor monetary, in cryptocurrencies, as the company's net loss in the third quarter of 2022 amounted to about $95 million, and employees working in digital assets departments were laid off. Throughout the year, the company has been reducing its presence in the cryptocurrency market and now it does not hold any crypto assets.

According to GameStop CEO MattFurlong (Matt Furlong), the company has not lost faith in the long-term potential of cryptocurrencies in the gaming industry, but does not want to risk significant equity capital in this industry. However, the retailer will continue to invest and promote projects related to non-fungible tokens (NFTs) and blockchain.

GameStop strategy works, but so far weakly:losses decreased by only $14 million compared to the second quarter of this year - then they amounted to about $109 million. Earlier it became known that the retailer made a new wave of cuts in the company - the company fired both the main employees and those who worked on the cryptocurrency wallet.