GameStop didn't sell its 4,710 Bitcoin after all, filing shows
GameStop revealed on Tuesday that it pledged nearly all of its Bitcoin as collateral on Coinbase as part of a covered call strategy in January, ending two months of speculation over whether it had sold the coins.
In a 10-K annual report to the Securities and Exchange Commission on Tuesday, the video game retailer revealed it pledged 4,709 Bitcoin (BTC), nearly all of its Bitcoin, as collateral under an agreement with Coinbase Credit, using the position to sell covered call options.
The SEC filing clears speculation from January that GameStop was preparing to exit its Bitcoin position after onchain analysts pointed out that it transferred its entire Bitcoin holdings to Coinbase Prime.
The Bitcoin treasury industry has faced pressure in recent months as Bitcoin has fallen 45% from its all-time high, with some analysts casting doubt last year on the sustainability of buy-and-hold strategies.
The move shows GameStop sought to earn income on its Bitcoin by placing short-dated call options with strike prices between $105,000 and $110,000 that are set to expire Friday.
The disclosure shows a $2.3 million unrealized gain and a $700,000 liability tied to the options, while some covered-call contracts expired unexercised in January.
GameStop’s covered call strategy enables it to sell call options that give buyers the right to purchase its Bitcoin at a fixed price. GameStop earns premiums and retains the Bitcoin if the options aren’t exercised.
GameStop directly holds just one Bitcoin now
Since GameStop moved 4,709 Bitcoin to Coinbase, a counterparty that can rehypothecate or reuse the pledged Bitcoin, GameStop is no longer counting those assets as directly held.
Putting Bitcoin up as collateral “resulted in the derecognition of the pledged digital assets and the corresponding recognition of a digital asset receivable,” GameStop said in the filing.
“Although the classification of these assets has changed, our economic exposure is consistent with direct ownership of the underlying Bitcoin,” it added.
GameStop still holds one Bitcoin that wasn’t put up for collateral.
GameStop added that its pledged Bitcoin was worth $368.3 million by Jan. 31 and that it recorded an unrealized loss of $59.7 million on that date because of Bitcoin’s price drop.
Related:
GameStop launched a Bitcoin treasury after its CEO, Ryan Cohen, met with Strategy chair Michael Saylor in February 2025 to discuss how Bitcoin strategies can be implemented.
Prior to moving the 4,709 Bitcoin to Coinbase, GameStop’s Bitcoin stash ranked in the top 25 Bitcoin treasuries by holding size.
Magazine:
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Meta (META.US) "cuts" the camera: $349 Ray-Ban glasses equipped with Muse and hearing aid functions
Meta Platforms (META.US) is expanding its smart glasses product line with a camera-free model, support for the popular new assistant Muse, and a hearing aid mode.
Is Tesla (TSLA.US) about to release its most expensive model? Roadster launch imminent, but options market remains indifferent
Tesla Roadster is scheduled for release on October 1st, and may become its most expensive model, but the options market has not heated up in advance.
Catering giant ventures into advertising! McDonald's (MCD.US) builds its own media network, targeting a $1 billion high-profit business
McDonald's is following in the footsteps of retail giants such as Amazon and Walmart by announcing plans to build its own media network.
Understanding the US Treasury's "Black Wednesday": The "Perfect Storm" Impact and the Rising Tide of "October Rate Hike"
U.S. Treasury bonds suffered their worst single-day sell-off in nearly 18 months: surging oil prices, explosive PMI data, hawkish comments from the Federal Reserve, and a lackluster 5-year Treasury auction combined to create four simultaneous negative factors. The 10-year yield broke above 5.1%, reaching a new high since 2007; the market's probability of another rate hike in October soared to 68%, and the swap market is now pricing in expectations of three rate hikes over the next year. Analysts believe that more than 80% of this sell-off is driven by real interest rates, with the 30-year mortgage rate surpassing 7% and doubts persisting about the effectiveness of the Treasury’s buyback plan.
Crypto prices
More
