During the earnings release for the third quarter of 2022, Gamestop announced the suspension of its cryptocurrency-related activities due to losses estimated at $95 million during the period. This could affect its NFT marketplace and portfolio for Web3 and games.
GameStop halts its crypto activities
The Decline of the Cryptocurrency Market continues to impact companies in the industry. GameStop, specializing in video game distribution and recently acquired by Web3, has announced that it will be ending its digital assets activities.
During GameStop’s usual quarterly conference call on Dec. 7, the company announced net losses of $94.7 million over this period. In addition, it provides for the dismissal of the staff of his department related to cryptocurrencies.
GameStop CEO Matt Furlong said he did “reduces their exposure to cryptocurrencies” and that the company “didn’t currently have a large amount of digital assets in their portfolio” :
“While we continue to believe that there is long-term potential for digital assets in the gaming world, we do not and will not risk too much of our shareholders’ capital in this space. »
GameStop Quarterly Results were really bad. Revenue is $1.19 billion and charges a decrease of 8.5% in comparison to the previous year. Most importantly, it’s well below analysts’ forecasts, which are estimated at $1.35 billion.
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GameStop is laying off massively
At the moment we don’t have any no further information on the activities concerned through this suspension. GameStop’s CEO has not clearly mentioned any plans and no official statement has been released so far.
Furthermore, in a recent document filed with the Securities and Exchange Commission (SEC), GameStop states that this is the case “plans to continue pursuing other business and strategic initiatives related to digital assets and blockchain technology.”
Since the beginning of the year, GameStop has launched many Web3-related products. The company announced just over a month ago the launch of its marketplace for non-fungible tokens (NFT) for games, in partnership with Immutable Xa second layer solution (Layer 2) on the Ethereum (ETH) blockchain.
Last May, GameStop also announced a beta version of its first digital wallet for Web3 and in particular, allowing players to send video game NFTs to each other.
Despite this, GameStop has carried out a wave of layoffs in its team, the Web3 and cryptocurrency department is obviously the most affected. The group posted its seventh straight loss this quarter.
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Sources: Q3 report, SEC document
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