(Kitco News) - GameStop (NYSE: GME), the gaming retailer whose stock has regularly been popular among the meme investor crowd, has announced that it is partnering with the cryptocurrency exchange FTX US in an effort to introduce more customers to crypto and expand its online marketing initiatives.
A Wednesday statement from GameStop indicated that the new partnership is intended "to introduce more GameStop customers to FTX's community and its marketplaces for digital assets. Along with collaboration on new e-commerce and online marketing, GameStop has indicated that it will also start carrying FTX gift cards in certain stores.
For as long as the partnership lasts, GameStop will now be considered FTX's preferred retail partner in the U.S., the statement said. At this point, additional details, including the financial terms of the deal, have not been disclosed.
This development for the gaming retailer follows its launch of a nonfungible token (NFT) marketplace and crypto wallet in July of 2022, which "allows gamers, creators, collectors, and other community members to buy, sell and trade NFTs."
The new partnership with FTX US might be part of an effort to gin up more activity on its newly launched exchange. In GameStop's recently submitted Q2 2022 earning report, the retailer noted that its recent financial success did not arise from the launch of these new products.
"Revenues earned from our digital asset wallet and NFT marketplace were not material to the condensed consolidated financial statements for the three and six months ended July 30, 2022," its quarterly SEC filing stated.
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During the company's Q2 earnings call, CEO Matt Furlong said the new deal aims to establish something "unique" in the retail space.
"The deal 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," Furlong said.
The price of GME responded positively to the news, gaining roughly 12% from a low of $23.48 and trading at a price of $26.63 at the time of writing.
It has been a blockchain and Web3-focused year for GameStop after first revealing its nonfungible token and Web3 gaming division in January. According to Furlong, the launch of its new NFT marketplace "supports GameStop's pursuit of long-term growth in the cryptocurrency, NFT and Web3 gaming verticals," which the company expects will rise in popularity with gamers and collectors in the coming years.
GameStop sales attributed to digital collectibles totaled $223.2 million in Q2, marking a 26% increase from the $177.2 million earned during the same period in the prior year.
