The company also said it purchased 4,710 bitcoins last month.

GameStop (GME) reported a decline in first-quarter revenue on Tuesday, sending its shares down nearly 4% in extended trading.

Although it managed to report a profit for the period, thanks to some store closures, the results indicate that the company is still struggling as consumers opt to buy video games online rather than in stores.

GameStop also provided an update on its closely-watched cryptocurrency play, saying it acquired 4,710 bitcoins between May 3 and June 10 for cash.

GameStop has seen its business decline recently, and some analysts have pulled their coverage on the company. Its shares trade as a meme stock, fueled by social media buzz rather than fundamentals, with recent momentum tied to its involvement in cryptocurrency.

In March, the company unveiled a plan to buy Bitcoin as a treasury asset and later raised $1.5 billion in a bond offering to fund those purchases.

GameStop's effort, similar to that of Strategy (MSTR), is to link its stock to Bitcoin prices and potentially increase its assets as the token price rises.

On Stocktwits, retail sentiment rose to 'bullish' from 'bearish' the previous day. As of writing, GME was the second most-trending ticker on the platform.

GME sentiment and message volume as of June 10 | Source: Stocktwits

A user believes the business has several positive markers: "Profitable 6.5B cash No debt Bitcoin."

Another user said the earnings report was "stellar," and they are buying the shares as they dip.

As of May 3, the company had $6.4 billion in cash and cash equivalents and $7.1 billion in total current assets, according to its earnings statement.

GameStop's revenue in Q1 fell to $732.4 million from $881.8 million a year earlier. A single analyst surveyed by FactSet expected $750 million.

Revenue from its hardware and accessories unit, which includes sales from new and pre-owned video games, dropped about 32% in the reported quarter.

Following the closure of nearly 600 U.S. stores in 2024, the company said it will close a "significant number" of additional stores this year.

GameStop reported net income of $0.17 per share, compared with an adjusted net loss of $0.12 a year earlier. A lone analyst polled by FactSet expected net income of $0.08.

GME shares are down 3.8% year-to-date.

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