SNEAK PEEK
- GameStop partners with crypto exchange platform, FTX.US.
- The goal of this partnership is to boost the adoption of cryptocurrencies in the gaming industry.
- GameStop shares jumped by 11% after the announcement.
GameStop has announced a partnership with cryptocurrency exchange platform FTX.US. The collaboration is aimed to enhance the interaction between the gaming and crypto communities.
The two leading companies in their domain will work together to promote marketing and e-commerce activities. According to the announcement, the GameStop retail stores will sell FTX gift cards. The video game firm will also be labeled as FTX’s preferred retail partner in the US.
After the announcement, GameStop shares jumped by a whopping 11%. The partnership announcement also came hand-in-hand with the GameStop’s fiscal Q2 earning report.
For the quarter ending July 30, net sales had fallen by 4%. The company reported a revenue of $1.14 billion which is lower than the estimated $1.27 billion by analysts. The analysts had predicted a 42 cents loss per share, which the company was successful in adjusting the loss to 32 cents per share.
GameStop stocks had gained popularity through memes and social media. It has witnessed sharp price fluctuations. However, the stocks are down by 36% in 2022 and show no signs of recovery currently.
The company had laid off its employees in July including its Chief Financial Officer, Mike Recupero.
Under the new leadership of Chewy.com founder Ryan Cohen and Amazon veteran CEO Matt Furlong, the company plans to bring in new initiatives to save the loss. They are planning to turn things around for the company by adapting to digital shopping and Web 3.0.
