GameStop’s FTX Deal Is About Gift Cards. Its Stock Went Up Anyway.

GameStop’s stock value has not remained tethered to the media hype. It’s the primary and primordial crowd of whomever people on social media say it is.

The fact that it sells video games from its digital and physical stores doesn’t matter to many of its retail shareholders.

This makes it difficult to write about GameStop’s second-quarter results, but here is the gist:

GameStop’s net sales were $1.136 billion, a decrease of 4% from the same period the previous year. It also took in $108.7 million in the third quarter, $43 million in additional losses compared to last year.

What Does GameStop’s Partnership With FTX Entail?

Right before the market closed, GameStop announced a partnership with Cryptocurrency exchange FTX. The news about the deal wasn’t brimming with details.

GameStop Corp. (NYSE GME) (GameStop Inc. or the Corporation) announced that it has entered into a partnership with FTX US (FTX) to introduce more GameStop customers to FTX’s community-based digital marketplaces.

GameStop will begin selling FTX gift cards in select stores in addition to collaborating with FTD on new digital marketing and e-commerce initiatives.

During the term of the GameStop partnership, GameStop will be the first official retail partner of GameStop in the United States. Neither GameStop nor the financial details of the GameStop partnership are being disclosed.

In a short earnings call where the executives did not take questions from financial analysts, Matthew Furlong, GameStop’s CEO, said that GameStop had received a brief gain in the FTX deal because of the close cooperation among its commerce and blockchain teams.

But GameStop will be carrying FTX gift cards so that customers can distribute them as gifts or as a means of presenting cash to only one recipient that they can only use to buy crypto on only one specialized platform.

GameStop is difficult to predict because it doesn’t realize the effect of its crypto-related investments. A nonfungible token market launched at GameStop on July 11.

According to the DappRadar crypto analytics platform, the marketplace has garnered $5.48 million in the past 30 days.

GameStop charges a 2.25 percent commission on transactions; it has therefore collected an estimated $123,000 to date.

Michael Pachter, an analyst at Wedbush Securities, was curt in his comments to Reuters about the FTX deal. The FTX partnership is unlikely to produce meaningful revenue or profit, but it sounds promising, so it is positive. Read more articles on activateenter.

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