Meme stock GameStop made history with record quarterly profits driven by Pokémon cards and figurines, but the risk is selling out and missing the move on Bitcoin.

GameStop (GME) Achieves $389.6 Million in Q1 2026, Setting Company Record for Single Quarter, Revenue Up 14% Year-over-Year, Driven Mainly by Collectibles Business Growing 65%; Board Approves $2 Billion Stock Buyback Plan.
(Background recap: GameStop suspected of "dumping" Bitcoin! Half of holdings transferred to Coinbase, unrealized loss of $70 million, exiting DAT strategy?)
(Additional background: Breaking news — GameStop announces purchase of 4,710 Bitcoins, GME surges over 25% this week)

Table of Contents

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• The Strongest Single Quarter Ever: The Miracle of Figures and Cards
• $2 Billion Buyback and $2.5 Billion Share Authorization: Cohen’s Capital Strategy
• Missing the Bitcoin Boat, eBay’s Ambitions
• Meme Stock’s Rebirth or the Next High-Stakes Gamble?

Nicknamed the meme stock, GameStop, through its transformation into collectibles like Pokémon cards and figures, delivered an impressive performance in the first quarter of 2026, with GME stock soaring over 13% after hours. The meme stock label is gradually being peeled away by a set of solid financial figures.

The Strongest Single Quarter Ever: The Miracle of Figures and Cards

GameStop filed a regulatory report with the U.S. Securities and Exchange Commission (SEC) on the 2nd showing that the company's overall revenue for Q1 increased 14% year-over-year to $835.3 million; net profit reached $389.6 million, not only a significant increase but also the highest quarterly profit in the company's history.

The core driver behind this stellar financial report is not traditional console gaming, but the collectibles business, with Pokémon cards, Marvel figures, anime merchandise, and other items growing 65% annually. As consumers become more accustomed to purchasing video games through channels outside physical stores, GameStop has continued to invest in the physical collectibles market over the past few years. This seemingly unusual transformation strategy is now paying off with impressive numbers.

Cost reductions have also been a key factor in profit explosion. Management has continuously cut store and administrative expenses, expanding profit margins alongside revenue growth, making this financial report even more substantial.

$2 Billion Buyback and $2.5 Billion Share Authorization: Cohen’s Capital Strategy

On the same day as the earnings release, GameStop’s board approved a $2 billion stock repurchase plan. This figure alone demonstrates management’s confidence in the company’s cash flow. The company reportedly holds about $9 billion in cash, so the buyback amount represents only a portion.

At the same time, the company announced it would increase the authorized number of common shares from the current limit to 2.5 billion. This move is more than a technical administrative adjustment: significantly increasing the authorized shares usually indicates management is reserving ammunition for future acquisitions using stock as currency. Coupled with Cohen’s recent series of actions, the direction is becoming clear.

Missing the Bitcoin Boat, eBay’s Ambitions

While GameStop’s collectibles business quietly grew stronger, CEO Cohen’s cryptocurrency bets seem to be quietly winding down.

In May 2025, GameStop announced following MicroStrategy’s “Bitcoin treasury” strategy, purchasing 4,710 Bitcoins between May 14 and 23, at an average cost of about $107.9k per Bitcoin, totaling roughly $400–$500 million.

However, the story took a sharp turn in early 2026. GameStop transferred all 4,710 BTC into Coinbase Prime custody, at that time holding a position worth about $368 million, reflecting a paper loss of tens of millions of dollars relative to the purchase cost. More intriguingly, Cohen was directly asked in a public setting whether he would sell Bitcoin to fund acquisitions, and his response was: “I’m not ready to say yet.”

Earlier, Cohen stated he had found a much more attractive capital destination than Bitcoin: acquiring eBay for $56 billion. He described this deal as “transformational,” which would completely reshape GameStop’s business landscape.

Market interpretation is straightforward: Cohen might be planning to realize losses on his Bitcoin holdings to fill the financing gap for the eBay acquisition.

However, previous reports indicated that eBay’s board officially rejected the proposal on May 12, with strong language stating that GameStop’s offer was “neither credible nor attractive,” questioning the certainty of its financing plan, potential operational risks, and governance structure.

eBay’s market cap is about $48 billion, while GameStop’s is around $10.3 billion—a classic case of a small fish trying to swallow a big fish.

Despite the rejection, Cohen publicly stated he “won’t give up” and urged eBay shareholders to independently evaluate the proposal’s value.

Is the Meme Stock’s Rebirth a True Revival or the Next Big Gamble?

Connecting these clues reveals a highly contradictory picture: on one hand, GameStop is steadily building real profits through Pokémon cards and figures, earning dollar by dollar; on the other hand, the CEO missed the Bitcoin boat and is trying to make a big splash with eBay, with a gambling spirit in capital allocation that has never faded.

For investors and the market, two key follow-up questions are: first, will GameStop eventually sell its unrealized Bitcoin holdings to cash in and fund the eBay acquisition? Second, is eBay’s door truly closed, or does Cohen still have ways to pressure shareholders and reopen negotiations?

A retailer earning a record high from figures and cards, can it sustain a capital adventure of “snake swallowing an elephant”? We’ll keep watching.