GameStop Limits Exposure to Crypto After Seeing $95M Loss in Q3

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GameStop Limits Exposure to Crypto After Seeing $95M Loss in Q3

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  • GameStop has limited its crypto exposure and presently holds no significant coin.
  • The company recently reported nearly $95 million in losses in the third quarter.
  • In June, GameStop announced its intention to enter crypto and NFT for growth.

The American video game giant GameStop Corp (NYSE: GME ) recently published its third-quarter financial statement for 2022, showing a loss of nearly $95 million. The company’s CEO, Matt Furlong, stated on a December 7 earnings call that the firm has proactively limited exposure to crypto and does not currently own a meaningful amount of any token.

Furlong further stated:

Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in this space.

Interestingly, GameStop published an article in June this year stating it would be looking into the crypto and NFT industries for growth after reporting a loss of $160 million in the video game market. In the most recent financial report prompting the U-turn decision on crypto, the company saw a slight improvement compared to the second quarter, which experienced losses of $108.7 million.

Notably, GameStop promoted many Web3-related products with its NFT marketplace, which launched on ImmutableX, an Ethereum layer-2 blockchain, on October 31 after a public beta in July.

In a related development, a leading US-based financial institution, Signature Bank, has pledged to downsize its deposits tied to cryptos as volatility grips the digital asset sector. The bank’s Chief Operating Officer (COO), Eric Howell, said: “We are not just a crypto bank; we want that to come across loud and clear.”

Howell clarified that by reducing its exposure to crypto, Signature would exit around $8-10 billion in deposits in the volatile market.

The post GameStop Limits Exposure to Crypto After Seeing $95M Loss in Q3 appeared first on Coin Edition.

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