GameStop Retains Bitcoin Holdings Using Covered-Call Strategy Instead of Selling

GameStop has confirmed that it did not sell its Bitcoin holdings, ending weeks of speculation about a possible exit from its crypto treasury strategy. Instead, the company pledged nearly all of its Bitcoin as collateral under a covered-call arrangement.

Bitcoin Used as Collateral for Options Strategy

In its annual filing to the U.S. Securities and Exchange Commission, GameStop disclosed that 4,709 Bitcoin were pledged to Coinbase Credit as collateral. The move allowed the retailer to sell short-term call options with strike prices ranging between $105,000 and $110,000, scheduled to expire Friday.

This strategy enables the company to earn premium income while keeping ownership exposure to Bitcoin if the options remain unexercised. The filing reported a $2.3 million unrealized gain alongside a $700,000 liability tied to the options.

Accounting Shift and Market Context

Because the Bitcoin was pledged as collateral, the company no longer lists those assets as directly held, although it stated that its economic exposure remains similar to ownership. By January 31, the pledged Bitcoin was valued at $368.3 million, while a $59.7 million unrealized loss was recorded due to price declines.

GameStop currently retains direct ownership of one Bitcoin, with the rest pledged under the agreement.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.