As GameStop revealed a major flop in its quarterly results, its CEO said he would focus on recovery, revealing his latest business partnership with FTX.
GameStop partners with FTX to pull business after loss
According to a story from the wall street journalafter experiencing subsequent operational failures, Texas-based GameStop reported a significant loss of revenue on Wednesday, September 7. This happened simultaneously with the announcement of his association with FTX as part of his recent business venture.
Compared to its revenue in the same period last year, GameStop said its second-quarter loss for 2022 fell to $1.18 billion, earning only total net sales worth $1.14 billion (through CNBC). As a result, its deficits reached $108.7 million (36 cents per share) in total, or $47. 1 million more than he lost the previous year, which was only $61.6 million.
That said, one of its new board chairs, CEO Matt Furlong, said GameStop would begin to change direction to bounce back from its flat fall. His statement related to the company’s latest business venture in partnership with FTX, which launched a non-fungible token (NFT) marketplace the other month. In its new platform, users can buy, sell or trade their NFTs for the digital items offered by GameStop.
Additionally, to curb its financial struggles, the company decided to lay off several of its workforce after hiring around 600 people starting in 2021. With this decision, GameStop let go of Mike Recupero, its chief financial officer, alongside other employees. As a result, the company’s expenses were reduced to 14% in the first quarter.
With its collaboration with FTX, the company would start offering FTX gift cards at specific stores as part of its new e-commerce and online marketing initiatives. This is despite the fact that the partnership somehow influenced GameStop’s image of laughter.
Also read: Apple Watch Ultra announced: Price, features and more
GameStop enters the crypto industry with FTX
After establishing an official joint business collaboration with FTX, GameStop is starting to make its way into the cryptocurrency realms. The edge indicated that he had already established a roadmap for his new business journey and new partnership.
By launching its own NFT marketplace and crypto wallet, GameStop has already taken a full leap into the blockchain space, and this partnership is following closely in its footsteps.
While the two companies didn’t provide details on how things will go, the video game electronics company did share a bit of its plans. According to them, it aims to make FTX’s crypto assets through its networks and marketplaces accessible to GameStop customers.
Because FTX has considered the American electronics company as its main retail partner, it could suggest that GameStop will sooner or later become the cryptocurrency exchange place to offer its items.
With what GameStop has invested in and given that it is now working with a widely recognized crypto exchange, it is very evident that the company is serious about stepping forward in the blockchain space. .
FTX is notable for devoting significant financial effort to advertisements that aired during the Super Bowl, as well as other sports teams and leagues, as a way to promote itself. In fact, just a year ago, he decided to change the name of American Airlines Arena, where the Miami Heat play their home games, to FTX Arena. He made this possible by paying the astronomical sum of $135 million.
Related Article: Day One of GameStop NFT Marketplace Generates $1.98M in Sales and Fees Totaling $44,500