GameStop (GME) witnessed a positive uptick in their stocks after they announced an impressive second-quarter performance and disclosed a sizable bitcoin investment exceeding half a billion dollars. The firm shared their Q2 adjusted earnings late Tuesday with an impressive $0.25 per share, which was $0.06 higher than previously forecasted by Visible Alpha analysts.
The firm enjoyed robust revenue growth of 22%, reaching up to $972 million, surpassing market expectations. Revenue from hardware and accessories saw an upward trend with a 31% increase totaling $592 million, and their collectibles department experienced a 63% surge racking up sales to $228 million. However, the software sales exhibited a 27% decrease, totaling $152.5 million.
During the quarter, the retailer giant revealed that they had made a substantial purchase of 4,710 bitcoin, valuated at $528.6 million as of the end of the quarter on August 2.
The firm also disclosed plans to issue a special dividend in the form of warrants to its investors. Shareholders on record as of October 3 will receive 1 warrant for every 10 shares owned. It is projected that around 59 million warrants will be disbursed around October 7.
Having recorded a 6% increase in midday trading, GameStop stocks were on the rise. However, the stock has still seen a 20% decrease in value over the current year, being one of the original meme stocks.