Renowned investor Steve Eisman has dismissed GameStop as a value investment, calling hopes for a successful acquisition-driven turnaround a "pipe dream". Despite the video game retailer's $9 billion cash pile, Eisman remains sceptical about its ability to deploy capital effectively. "Maybe they buy something good, and maybe they buy something not so good," Eisman said on his podcast. "Too many maybes for me." He emphasised that GameStop operates a "declining business" as the industry shifts permanently towards digital downloads. GameStop recently reported fourth-quarter revenue of $1.10 billion, missing estimates of $1.47 billion and down from the prior year's $1.28 billion. While aggressive cost-cutting produced an adjusted earnings beat, Eisman attributes recent profitability entirely to expense reduction rather than improving fundamentals. The company also disclosed holding $368.4 million in Bitcoin.

GameStop has closed approximately 700 stores in each of the past two years, reducing its footprint from 2,915 locations in February 2024 to 1,598 currently. The company states it does not expect significant closures in 2026. The video game retailer faces declining relevance as digital downloads now account for 89.5% of game purchases. Both Sony and Microsoft offer consoles that only support digital content, eliminating physical software sales entirely. Despite shrinking sales from $3.823 billion to $3.630 billion year-over-year, GameStop achieved operating income of $232.1 million in fiscal 2025 versus a $26.2 million loss the prior year, aided by reduced expenses. Wedbush Securities analyst Michael Pachter predicts continued decline, noting an entire generation is growing up without experiencing physical game copies.

GameStop confirmed in its Tuesday SEC 10-K filing that it still holds 4,710 BTC worth approximately $368 million, ending speculation triggered by an onchain transfer in January. The company pledged 4,709 BTC as collateral on Coinbase Prime for a covered-call strategy, whilst holding one BTC directly. The transfer was not a sale but setup for selling short-dated call options with strike prices between $105,000-$110,000 per BTC, generating a $2.3 million unrealised gain. GameStop purchased the Bitcoin in May 2025 for approximately $500 million. Due to Coinbase Credit's rehypothecation rights, US GAAP required derecognising the 4,709 BTC from GameStop's balance sheet. This dropped its ranking from 21st to approximately 190th amongst public company Bitcoin holders, though the coins remain under the company's control.