GameStop is expected to report second-quarter fiscal 2026 earnings after US markets close on Tuesday, with investors focused less on shrinking store sales than on the paper gains from its multibillion-dollar Bitcoin treasury. Analysts polled by Refinitiv expect revenue to fall from the year-earlier quarter.

The company, led by chief executive Ryan Cohen, began converting cash reserves into Bitcoin in 2025, following a strategy pioneered by Michael Saylor's MicroStrategy. GameStop held more than 4,700 bitcoins as of its last disclosure, and the token's strength through the summer has lifted the value of that holding.

Core operations tell a different story. Sales of physical games, consoles and collectibles have continued to erode as digital downloads dominate, and GameStop has closed hundreds of stores over the past two years.

Wall Street will scrutinise whether cost cuts and the roughly $9bn cash pile can sustain profitability without further store closures. GameStop shares remain a favourite of retail traders and are prone to sharp swings around earnings. Any commentary from Cohen on additional Bitcoin purchases, buybacks or new business lines is likely to move the stock more than the underlying sales figures themselves.

The results will test whether a meme-stock icon can credibly reinvent itself as a Bitcoin-holding company while its original retail business keeps contracting.