GameStop is doubling down on crypto in a new partnership with FTX US
Game retailer GameStop is partnering with US crypto exchange FTX US to bring more customers to crypto and collaborate on online marketing efforts.
In a Sept. 7 statement, the gaming retailer noted that the new partnership will introduce GameStop’s customers to the FTX ecosystem, including its digital asset marketplaces, while also making the retailer FTX’s “preferred retail partner in the United States.”
The partnership will also see certain GameStop stores carry FTX gift cards. As of August 31, there are 2,970 GameStop stores across the United States.
In its Q2 earnings call, GameStop CEO Matt Furlong said the new deal is aimed at establishing something “unique” in retail.
The agreement we just announced with FTX is a by-product of our commerce and blockchain team, working hand in hand together to establish something unique in the retail world.
GameStop did not disclose the financial terms of the partnership in its statement.
The news of the new partnership came on the same day that GameStop released its financial results for the quarter ending July 30, 2022.
Despite GameStop reporting a nearly 4% decline in net sales to $1.14 billion in the quarter, shares of GameStop managed to rise nearly 12% in after-hours trading following the news, reaching $26.84 per share.
GameStop has significantly increased its Web3 efforts this year after unveiling an NFT and Web3 gaming division in January, as well as launching its NFT marketplace on July 11 in partnership with Ethereum (ETH) scaling solution Immutable X.
Furlong noted during the earnings call that the launch of the marketplace “supports GameStop’s pursuit of long-term growth in the cryptocurrency, NFT and Web3 gaming verticals” that it expects to become increasingly important to gamers and collectors.
The marketplace is a “non-custodial, Ethereum Layer 2-based marketplace” that allows users to connect their own digital assets, such as the recently launched GameStop Wallet.
Related: GameStop NFT’s daily fee revenue dips below $4K as gloom infects markets
GameStop noted that sales related to its digital collectibles were $223.2 million in the quarter, representing an increase of nearly 26% compared to sales worth $177.2 million in the prior period.
According to DappRadar, the marketplace has seen a volume of $21.26 million traded on it since its launch. Activity on the marketplace has slowed dramatically since launch, with only $922,350 of activity on the market over the past seven days.
