GameStop has set off discussion across financial and crypto circles after recent disclosures revealed the company assigned nearly all of its Bitcoin reserves to Coinbase as collateral. This move came into focus with the release of GameStop’s annual 10-K filing, which also refuted rumors that the firm had sold, rather than re-deployed, its sizable cryptocurrency holdings.
Bitcoin Utilized in Covered-Call Income Plan
The U.S.-based video game retailer, recognized for its widespread store network and for capturing retail investor attention in recent years, shifted 4,709 out of its 4,710 Bitcoin into a covered-call structure with Coinbase. Through this agreement with Coinbase Credit, GameStop retained immediate custody over just one Bitcoin, allocating the rest as collateral for a short-term options scheme.
This strategy targeted income generation by gathering premiums from selling call options rather than liquidating the core Bitcoin stack. The contracts, tied to derivative agreements, featured strike prices set from $105,000 to $110,000 and are set to expire during the final days of March 2026. When the price of Bitcoin stays under the contract threshold, the company collects and retains premiums; if it exceeds the strike price, gains become capped, limiting further upside.
Pledged Bitcoin Alters Financial Reporting
GameStop’s move resulted in an overhaul of its balance sheet approach. Since Coinbase’s rehypothecation rights allow re-use of pledged assets, GameStop no longer lists these coins as directly owned digital property. Instead, a receivable reflecting the contractual right to reclaim an equivalent amount of Bitcoin now appears, valued at $368.3 million as of the close of the fiscal year on January 31.
The company’s recent filings reported a $2.3 million unrealized gain related to the options positions, next to a $59.7 million unrealized loss, highlighting exposure to Bitcoin’s price declines from its all-time highs. Some of the call option contracts had already expired worthless by the filing date, leaving GameStop with the collected option premiums.
Addressing Market Speculation
Speculation around GameStop’s crypto conduct intensified at the start of the year after blockchain trace data showed a full transfer of Bitcoin holdings to Coinbase Prime. The latest 10-K filing clarified that the company had not exited its crypto position but had instead sought to optimize it with an options-based approach, maintaining exposure while attempting to extract periodic income.
This new treasury approach was developed after discussions between CEO Ryan Cohen and Michael Saylor, who has become widely known in the corporate Bitcoin treasury arena. At one point, GameStop’s digital asset reserves ranked among the top 25 global corporate Bitcoin treasuries.
GameStop’s filings stated that, despite the accounting switch, the company’s “economic exposure is consistent with direct ownership of the underlying Bitcoin.” The assets now fall under a counterparty structure, incorporating both collateralized arrangements and derivative contracts, reflecting a shift in how companies might manage large, volatile cryptocurrency allocations.
