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Cryptocurrency: GameStop taps FTX crypto exchange for partnership deal
GameStop Corp. announced on Wednesday, Sept. 7 that it formed a partnership with the FTX crypto exchange. The financial terms of the deal were not disclosed by the American video game, consumer electronics, and gaming merchandise retailer.
"GameStop today announced that it has entered into a partnership with FTX US," the company said in a press release. "The partnership is intended to introduce more GameStop customers to FTX's community and its marketplaces for digital assets. In addition to collaborating with FTX on new e-commerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in select stores."
Under the agreement, GameStop will serve as FTX's exclusive retail partner in the United States. The announcement also comes shortly after it revealed its quarterly sales, which show losses but quite smaller than expected.
The company shared on Wednesday that its quarterly sales have decreased and its losses have widened. In the second quarter that ended July 30, its total sales fell to $1.14 billion, which was $1.18 billion in the year-ago period. GameStop's losses inflated to $108.7 million, which is equivalent to 36 cents per share. From the previous year, the loss was only $61.6 million or 21 cents per share.
In any case, GameStop's move to team up with the crypto exchange and marketplace firm is part of its digital asset push. It is aiming to boost its presence in the cryptocurrency industry, and as per Reuters, it will start selling FTX gift cards at some of its locations, and this is part of their collaboration agreement.
Meanwhile, Bloomberg reported that GameStop's shares immediately went up after the announcement of its partnership deal with FTX US. This result is said to be suggesting that the video game retailer is making strides in its strategic effort of shifting to non-fungible tokens even after revealing its losses and sales decline in the quarter.
"Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time," GameStop's chief executive officer, Matt Furlong, said regarding the firm's new collaboration with a crypto firm. "This said, we believe GameStop is a much stronger business than it was 18 months ago.