GameStop Corp. stockholders approved all proposals at the 2026 Annual Meeting of Stockholders, including an amendment to the certificate of incorporation to increase the number of authorized shares of Class A common stock. The amendment, which received the affirmative vote of 68.7% of votes cast, provides the company with the capacity to issue common stock for strategic transactions, including its proposed acquisition of eBay Inc. This authorization is critical as GameStop pursues a non-binding proposal delivered on May 3, 2026, to acquire all outstanding eBay common stock at $125 per share in a combination of cash and stock.

The meeting also saw the re-election of all five director nominees, the ratification of the independent registered public accounting firm, and an advisory vote on executive compensation. Final voting results will be filed with the Securities and Exchange Commission on a Form 8-K. The approval comes as GameStop navigates a shifting retail landscape, with Sony Group Corp planning to cease production of physical PlayStation discs by January 2028, pressuring the company to diversify beyond physical media sales.

Acquisition Details and Financial Position

GameStop's proposed acquisition of eBay remains subject to conditions, including the negotiation of a definitive agreement, financing, and regulatory approvals. As of the filing date, GameStop directly beneficially owns 4,343,725 shares of eBay common stock and holds economic exposure to a further 39,046,658 shares through put/call option transactions. These Put/Call Pairs, expiring February 23, 2028, were previously settleable only in cash until the Hart Scott Rodino (HSR) Act Condition was satisfied on June 3, 2026. This satisfaction enabled the option for physical settlement of the underlying shares.

Financial Performance and Outlook

The strategic pivot follows a fiscal 2025 where software sales declined 27.5% year-over-year to $729.3 million, while the collectibles segment surged 47.7% to $1.06 billion. GameStop reported its most profitable quarter in history recently, with net income of $389.6 million on revenue of $835.3 million. The company has projected adjusted EBITDA for the fiscal year ending January 30, 2027 (FY2026) to exceed $600 million, compared to $345.4 million in fiscal 2025.

GameStop Corp. renewed a Bitcoin options arrangement with Coinbase after the first set of contracts expired worthless, extending a strategy that generated modest income but contributed little to the retailer's record quarterly profit. The new contracts carry an $80,000 strike price, down from the prior range of $105,000 to $110,000, as the company continues to prioritize premium income over maximizing exposure to Bitcoin's potential price appreciation.

GameStop rolled over covered call contracts tied to nearly all of its Bitcoin holdings after the previous batch expired on May 29, based on its latest quarterly filing. The arrangement allows Coinbase to potentially acquire the Bitcoin at a predetermined price if the cryptocurrency rises above the strike price before expiration. In exchange, GameStop collects an upfront premium.

Because the Bitcoin is pledged under the arrangement, accounting rules require GameStop to remove the cryptocurrency from its balance sheet and instead record a receivable representing its right to get the Bitcoin back. As of the filing date, that receivable was valued at approximately $369.6 million, roughly $58 million below the original cost basis of the Bitcoin.

Bitcoin Holdings and Earnings Impact

GameStop began building its Bitcoin treasury in 2025 after raising roughly $1.5 billion through debt financing. The company held around 4,710 Bitcoin during the quarter, with all but one coin committed to the covered-call strategy. Despite the size of the position, Bitcoin contributed only about $1 million to quarterly earnings through gains on digital assets.

GameStop reported net income of roughly $390 million during the period, generated majorly by interest income from large cash balance and unrealized gains tied to its eBay options position.

Key Financial Metrics