The expansion of the global crypto space has caused many companies to look for their place in it. Various big names have hooked hands with crypto companies. FTX is a Bahamian cryptocurrency exchange. Read more.
As Gamestop tried various methods to revive the declining value of its stocks, it decided to partner with FTX. The decision has been mainly aimed at improving the lowering value of its stocks. According to the reports, “It has partnered with FTX US. The partnership’s aim was described as introducing its customers to FTX community marketplaces for digital assets”. But analysts were still skeptical about the long-term growth prospects after the company reported a decline in sales and a wider loss in the second quarter.
The said company saw a substantial decrease in its value the previous year. The result was an overhaul in management to ensure its languishing sales are restored. The enhancements were seen as its revenue increased because of its consistent social media presence. The following months didn’t prove good for Gamestop, as its shares saw a decline of 35 cents in its shares, according to Refinitiv IBES data.
The agreement constructs on GameStop’s earlier incursions into NFTs, including the launch in June of a digital asset wallet to allow gamers to store, send and receive cryptocurrencies and NFTs. In July, the company rolled out an NFT marketplace to trade those assets, despite the fact that sales of such digital artworks have declined resulting in the crypto industry crash.
The pivot to NFTs has yet to display in GameStop’s results. Net sales dropped 4% to $1.14 billion in the fiscal second quarter, the company said in a statement, falling short of analysts’ estimates. The company’s net loss nearly doubled to $108.7 million.
GameStop is also changing its retail strategy with a focus on toys and collectibles at its stores. That effort seems to be paying off with sales reaching $223.2 million in the quarter, up from $177.2 million in the same quarter last year.
