GameStop Used Bitcoin Holdings for Covered-Call Options Strategy, SEC Filing Reveals

GameStop (NYSE: GME) disclosed in its fiscal 2025 annual report filed on March 24, 2026, that it pledged 4,709 of its 4,710 bitcoin as collateral with Coinbase Credit to execute a covered-call options strategy, generating premium income while maintaining economic exposure to the asset, rather than selling its holdings as market speculation had suggested.

The company wrote short-dated call options with strike prices between $105,000 and $110,000 per bitcoin and expirations through March 27, 2026. Under U.S. GAAP, GameStop derecognized the pledged bitcoin from its balance sheet and recorded a digital assets receivable valued at $368.3 million as of January 31, 2026, because Coinbase holds rehypothecation rights over the collateral.

The company originally purchased 4,710 bitcoin in May 2025 for approximately $500 million, at an average cost basis of roughly $106,000 to $107,900 per coin.

Covered-Call Strategy Details

Transaction Structure

GameStop transferred nearly its entire bitcoin position—4,709 BTC—to Coinbase Prime on or around January 16, 2026, a move that had triggered speculation that the company was preparing to sell its holdings. The filing clarified that the transfer was operational, not a liquidation. Under a collateral agreement with Coinbase Credit, the company sold over-the-counter covered-call options against the bitcoin, with strike prices ranging from $105,000 to $110,000 and maturities through March 27, 2026.

Economic Exposure and Accounting Treatment

Because Coinbase Credit holds the right to rehypothecate, commingle, or sell the pledged bitcoin, GameStop determined that control of the assets had transferred. Under U.S. GAAP, it derecognized the 4,709 BTC from its balance sheet and recorded a digital assets receivable valued at $428 million at derecognition and $368.3 million as of January 31, 2026. The company stated that its economic exposure “remains consistent with direct ownership of the underlying bitcoin.”

Financial Impact

Income and Losses

For fiscal 2025, GameStop recorded a total $131.6 million loss on digital assets and related receivables—3.6% of net sales—broken down as:

• $71.8 million realized loss upon derecognition

• $59.7 million unrealized loss on the receivable reflecting bitcoin’s price decline

• $0.1 million remeasurement loss on the retained coin

The options produced a $2.3 million unrealized gain, partially offset by a $0.7 million derivative liability.

Post-Expiration Status

With bitcoin trading near $68,000 to $69,000 at the time of the filing, well below the $105,000 to $110,000 strike prices, the calls were out-of-the-money, meaning GameStop was on track to retain the premiums as income if prices held steady through expiration. A portion of the covered-call contracts expired unexercised after the fiscal year end, while the related collateral remained with Coinbase Credit.

Strategic Context

Bitcoin Treasury Ranking

The accounting treatment dropped GameStop’s ranking among corporate bitcoin holders from approximately 21st globally to 190th. The company’s approach contrasts with firms like Strategy, which have pursued open-ended bitcoin accumulation without derivatives overlays. GameStop’s structure is oriented toward generating premium income while the position sits at an unrealized loss relative to its cost basis.

Disclosed Risks

The 10-K filing lists several risks tied to the strategy, including bitcoin price volatility, counterparty credit exposure if Coinbase defaults, and rehypothecation risk that obscures legal title to the collateral. The filing also notes regulatory and accounting uncertainty around crypto assets broadly.

Frequently Asked Questions

Did GameStop sell its bitcoin?

No. GameStop pledged 4,709 BTC as collateral for a covered-call options strategy and retained economic exposure to the asset. The transfer of bitcoin to Coinbase Prime in January was operational, not a liquidation.

How much did GameStop lose on bitcoin in fiscal 2025?

The company recorded a $131.6 million loss on digital assets and related receivables for the fiscal year ended January 31, 2026, consisting of a realized loss upon derecognition, an unrealized loss on the receivable, and a small remeasurement loss on the retained coin.

Why did GameStop’s bitcoin disappear from its balance sheet?

Because Coinbase Credit holds rehypothecation rights over the collateral, GameStop was required under U.S. GAAP to derecognize the BTC and record a digital assets receivable instead. The company’s economic exposure remains consistent with direct ownership of the underlying bitcoin.