GameStop (GME) filing documents submitted to the U.S. SEC on June 2 show that net income in the first quarter of 2026 reached $389.6 million, setting the company’s highest quarterly profit record. Revenue grew 14% year over year to $835.3 million, with the main momentum coming from the collectibles business, which rose 65% year over year. On the same day, the board of directors approved a $2 billion stock repurchase plan.
First-Quarter Financial Report Key Figures
GameStop’s key metrics for the first quarter:
Net income: $389.6 million (highest quarterly profit in company history)
Revenue: $835.3 million (up 14% year over year)
Collectibles business: up 65% (Pokémon card collectibles, Marvel figurines, and anime merchandise)
Cash reserves: estimated at about $9 billion
Stock repurchase plan: $2 billion (approved by the board on June 2)
Authorized share upper limit: proposed increase to 2.5 billion shares
After the earnings release, GME’s stock price briefly rose by more than 13% in after-hours trading. Management has continued to cut store and administrative expenses. The decline in expenses was one of the key factors behind this quarter’s record-high profitability.
Bitcoin Holdings Update: 4,710 BTC transferred to Coinbase Prime, sale plan unclear
GameStop bought 4,710 bitcoins between May 14 and May 23, 2025, with an average purchase cost of about $107,900 per coin, for a total investment of about $400 million to $500 million.
All 4,710 bitcoins were subsequently transferred to Coinbase Prime custody. At the time of transfer, the market value was about $368 million, resulting in an unrealized loss versus the purchase cost. When asked in public whether he would sell the bitcoins, Ryan Cohen’s response was: “I’m not ready to say.” Cohen also said he has found a more attractive use of capital than bitcoin—an eBay acquisition deal. GameStop has not yet released any official plan or timeline regarding the sale of its bitcoin holdings.
eBay Acquisition Proposal: Rejected on May 12, Cohen publicly says he won’t give up
Ryan Cohen publicly said he intended to acquire the online auction platform eBay for $56 billion, describing the transaction as having “transformational significance.” On May 12, 2026, eBay’s board of directors officially rejected the proposal. In the rejection statement, eBay said GameStop’s offer was “neither credible nor attractive,” and questioned the certainty of its financing plan, potential operational risks, and GameStop’s governance structure.
eBay’s market cap is about $48 billion, while GameStop’s market cap is about $10.3 billion. After the rejection, Cohen publicly said “won’t give up” and urged eBay shareholders to independently evaluate the value of the proposal. As of now, both sides have not issued any statement regarding a timeline for further negotiations.
Frequently Asked Questions
What are the main reasons behind GameStop’s record first-quarter profit?
Based on the filing documents GameStop submitted to the SEC, the collectibles business (including Pokémon card collectibles, Marvel figurines, and anime merchandise) grew 65% year over year, which was the main driver of revenue growth this quarter. At the same time, management continued to cut store and administrative expenses, and the decline in costs further expanded profit margins.
What is the current status of GameStop’s 4,710 bitcoins?
All 4,710 bitcoins have been transferred to Coinbase Prime custody. At the time of transfer, the market value was about $368 million, below the May 2025 purchase cost of about $400 million to $500 million, resulting in an unrealized loss. Regarding whether he would sell, Ryan Cohen said, “I’m not ready to say.” The company has not released any sale plan or timeline.
What is the subsequent status after eBay rejected GameStop’s acquisition proposal?
eBay’s board of directors officially rejected the proposal on May 12, 2026, with strong language. Ryan Cohen publicly responded that he “won’t give up” and urged eBay shareholders to independently evaluate the proposal. As of the time of this report, neither side has released any official statements regarding arrangements for further negotiations.
