GameStop (NYSE:GME) is in the spotlight on Wednesday, with the video game retailer’s heavily shorted stock up +4%. The company swung to an operating profit in Q2, but the highlight of its earnings report was its cash pile, which more than doubled at the end of the quarter.
The Grapevine, Texas-based firm said cash and cash equivalents rose to $8.69B as of August 2, 2025, compared to $4.76B as of February 1, 2025, and $4.19B as of August 3, 2024. The quarter-to-quarter rise was a whopping $4.50B.
But an analysis of GameStop’s (NYSE:GME) financial statements showed that the balance sheet increase was 80x more than the video game retailer made actually selling products to customers. So how did it achieve that? By almost entirely selling convertible debt.
GME took in $4.15B from convertible notes. It could take in another $1.9B this quarter after announcing a special dividend in the form of warrants, with one warrant per 10 shares granting the right to buy shares at $32.
The company’s shares were last up +4.1% in late afternoon trade at $24.56, having earlier risen as much as +7.8% to a session high of $25.43.
It is worth noting that GameStop’s (GME) cash pile is bigger than the market cap of major retailers such as Levi Strauss (LEVI), Gap (GAP), and Five Below (FIVE).