GameStop (NYSE: GME) – the poster child of meme stock mania – is struggling to reinvent itself.
On Wednesday, the gaming merchandise retailer reported an uptick in its quarterly profit, but sales were declining, reinforcing that it continues to struggle in a world dominated by digital downloads and subscription gaming.
As hardware and software revenue continue to shrink, GameStop is leaning heavily on collectibles and a Bitcoin treasury strategy to stay relevant.
Yet neither avenue looks capable of delivering the kind of growth needed to restore confidence in GME shares that are down more than 35% versus their year-to-date high at the time of writing.
Why collectibles aren’t enough to lift GameStop stock
Collectibles are increasingly becoming GameStop’s fallback, now accounting for nearly a third of its overall revenue.
Higher margins on toys, trading cards, and memorabilia sure are helping improve the firm’s gross profit. However, the segment is inherently limited.
The collectibles market thrives mostly on nostalgia and niche demand rather than scalable expansion.
The segment does provide a temporary cushion – but in GameStop’s case, it still represents a larger slice of a contracting business model.
As of writing, GME shares need a strong catalyst for long-term growth, not a mere stabilizer – and that’s really all the collectibles business is for the NYSE-listed firm heading into 2026.
Why Bitcoin isn’t enough to drive GME shares higher
GameStop decided to mirror MicroStrategy and started adding Bitcoin to its balance sheet in 2025.
However, the Michael Saylor company pursued an aggressive, debt-funded accumulation strategy, positioning itself as a de facto BTC proxy stock years before crypto treasuries were even a thing.
GME, by contrast, has taken a cautious, almost tentative approach, holding just over 4,700 Bitcoin. In Q3, the retail firm didn’t even double down on its exposure to the world’s largest cryptocurrency by market cap.
Sure, its BTC holdings still provide diversification – but they also expose it to the inherent crypto market without offering a clear strategic advantage.
Unlike MSTR, the company based out of Grapevine, Texas, lacks a focused digital asset mandate, making its Bitcoin treasury look more like a speculative gamble than a coherent plan.
For those interested in gaining exposure to a Bitcoin proxy, MicroStrategy Inc – not GameStop shares – remains the number one choice globally.
How to play GameStop heading into 2026
GameStop’s reliance on collectibles and Bitcoin underscores the absence of a viable turnaround in its core video game retail business.
Hardware and software sales continue to erode – and the firm has failed to establish a meaningful digital presence.
Collectibles may deliver steady margins, and Bitcoin could benefit from a future rally, but neither is sufficient to offset structural decline.
For investors, GME stock represents exposure to a retailer clinging to nostalgia while dabbling in crypto without conviction.
In 2026, GameStop looks less like a comeback story and more like a relic of meme‑era speculation, best avoided by serious market participants.
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