Once known for brick-and-mortar game sales and midnight console launches, GameStop (GME), one of the world’s largest video game retailers, is rewriting its playbook.

The company is undergoing a profound transformation, shedding its analog roots and embracing the digital frontier. At the core of this evolution are e-commerce, downloadable content, and an unexpected new player – Bitcoin (BTCUSD). Quietly accumulating BTC, GameStop hints at a broader strategy aimed at leveraging cryptocurrency’s potential well beyond its traditional role as a video game retailer.

Shares have surged, rallying ahead of its Q1 2025 earnings. Now, all eyes turn to Tuesday, June 10, when the company will reveal its Q1 financials after market close. With speculation mounting over the impact of its crypto move, this earnings report could prove pivotal for investors, offering either a comeback story or a cautionary tale, while the Bitcoin strategy adds a compelling new layer to watch the report.

About GameStop Stock

Texas-based GameStop (GME), founded in 1996, has transformed from a traditional video game retailer into a global hub for gaming and pop culture merchandise. With a footprint spanning the U.S., Canada, Europe, and Australia, it sells new and pre-owned consoles, accessories, digital content, and collectibles. Its current market cap hovers around $13.1 billion.

Shares of the video game retailer have weathered turbulence, plunging 38% from their 52-week peak of $48. While down 5.6% on a YTD basis and mid-teens off 2025 highs, the stock has staged a notable rebound, surging 22.2% over the past three months. 

A Closer Look at GameStop’s Mixed Q4 Report

GameStop’s Q4 earnings results, which dropped on March 25, was a mixed bag. Revenue hit $1.28 billion, well below Wall Street’s estimates and down sharply from $1.79 billion in the prior-year period. But beneath the surface, the numbers told a different story. Adjusted EPS came in at $0.30, crushing analyst expectations of $0.09.

While GameStop is gearing up to unveil Q1 earnings this Tuesday, analysts monitoring the company forecast $754.2 million in revenue and a sharp 166.7% annual EPS surge to $0.08. Zooming out, the bottom line is expected to rise 42.4% to $0.47 per share in fiscal 2025, and hold steady the year after.

GameStop’s upcoming report is not just about numbers – it is a pulse check on its crypto-fueled reinvention. After spending half a billion dollars on Bitcoin to acquire 4,710 BTC in total, and raising $1.5 billion through convertible debt, the retailer is betting big on a digital and decentralized future. The earnings report could tilt the tone for GameStop’s storyline this year.

What Do Analysts Expect for GameStop Stock?

Despite GameStop’s ongoing transformation and operational improvements, GME stock is not exactly winning hearts on Wall Street. The only analyst covering GME has a “Strong Sell,” and a price target of $13.50, hinting at a brutal 55% drop from here. 

GameStop’s digital pivot, cost discipline, and collectible push hint at a company trying to reinvent itself, but the path forward remains hazy. With a lofty valuation, fading core retail strength, and a crypto bet that lacks timing or precision, GME walks a tightrope. 

Its Q1 earnings next week may prove pivotal, offering clarity or compounding doubt. Until then, investors might do well to stay watchful and weigh each move with caution.