GameStop, a retailer of video games, has announced that it will no longer put any effort into cryptocurrencies after suffering net losses of $94.7 million in the third quarter and firing staff from its department of digital assets.
GameStop CEO Matt Furlong stated on a Dec. 7 earnings call that the company has “proactively minimized exposure to cryptocurrencies” and “does not currently hold a material balance of any token,” adding:
“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.”
GameStop hinted earlier this year about its crypto plans
The company stated earlier this year that it was considering cryptocurrency, nonfungible tokens (NFTs), and Web3 applications as growth opportunities, referring to these areas as “increasingly relevant for gamers of the future.”
In the future, it will turn its attention to gaming, collectibles, and used goods.
According to a Dec. 7 filing with the Securities and Exchange Commission, it is “also pursuing, and plans to continue to pursue, other business and strategic initiatives associated with digital assets and blockchain technology,” suggesting that its moves in the NFT space are still proceeding (SEC).
The most recent Web3-related product promoted by GameStop is its NFT marketplace, which launched on ImmutableX, an Ethereum layer-2 blockchain, on October 31 after a July public beta.
Before launching its NFT marketplace in May, the company unveiled a beta self-custody crypto wallet and a beta NFT marketplace on Loopring, another layer-2 Ethereum protocol, in March.
In an effort to increase customer interest in cryptocurrency and to collaborate on e-commerce and online marketing initiatives, it also partnered with the now-bankrupt cryptocurrency exchange FTX US in September. Soon after declaring bankruptcy on Nov. 11, it severed ties with the exchange.
Furlong confirmed in the earnings call that GameStop made multiple staff reductions on December 5 as part of its third round of layoffs for 2022.
However, compared to the second quarter, which saw losses of $108.7 million, the third quarter’s losses slightly decreased. Additionally, GameStop, which reported a $105.4 million loss in Q3 2021, saw an improvement year over year.