GameStop has revealed it pledged nearly all of its Bitcoin holdings as collateral with Coinbase as part of a covered call strategy, clarifying speculation that it had sold its crypto assets earlier this year.
The disclosure came in the company’s annual filing with the US Securities and Exchange Commission, where it said it pledged 4,709 Bitcoin under an agreement with Coinbase Credit.
Bitcoin used as collateral for options strategy
GameStop used the pledged Bitcoin to sell covered call options which generated revenue for the company through the sale of Bitcoin purchase rights that had a predetermined price.
The contracts were short-term agreements which had strike prices that ranged from $105000 to $110000 and would expire within days.
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The company stated that its actions produced option premiums while it retained Bitcoin exposure because the contracts remained unexercised. Investors who want to generate yield from their current assets use covered calls during times of market volatility because they expect minimal price growth.
Filing clears earlier speculation
The filing resolves speculation from January, when onchain data showed GameStop had transferred its Bitcoin holdings to Coinbase Prime, raising questions about whether the company planned to exit its position.
The company established that the transfer served as an element of their financial plan instead of being treated as an asset liquidation.
The explanation revealed the reasons behind the abrupt transfer of money, which had been a topic of analysis by experts and observation in the cryptocurrency market during that period.
Accounting changes and exposure maintained
GameStop declared that it does not recognize the assets as part of its balance sheet because Bitcoin serves as collateral for the company. The company explained that the arrangement resulted in recognizing a digital asset receivable instead of holding the Bitcoin outright.
The company showed that its economic exposure continues to match the effects of owning assets.
GameStop now directly holds only one Bitcoin that was not included in the collateral arrangement.
Strategy comes amid market pressure
This is part of a response to the sizable drop in the price of Bitcoin from its all-time highs, as well as pressure from other corporately owned cryptocurrencies. Once the transfer was complete, GameStop was among the largest corporately owned cryptocurrenices in the world (both in terms of value and number of Bitcoins), and will now have a mixed strategy of generating income through returns on its cryptocurrency holdings and through long term increases in its cryptocurrency prices.
GameStop entered into the Bitcoin Treasury Market in early 2025 after CEO Ryan Cohen spoke directly with Michael Saylor, a well-known proponent of corporations adopting Bitcoin within their treasuries. When the transfer takes place, GameStop will remain one of the largest holders of Bitcoin and will rank within the top tier of public companies that own Bitcoin.
Investors in the market use derivatives and structured products as their main tools for risk management and return enhancement according to the current market trend which their approach reflects.
Large Bitcoin treasuries have been established by companies such as MicroStrategy which now operates under the name Strategy while others have tested various methods including lending and staking and derivative trading to boost their revenue streams.
The market downturns revealed that keeping substantial crypto holdings requires active management because of the associated dangers.
The companies which bought Bitcoin during market uptrends experienced major unrealized losses when the prices dropped.
GameStop demonstrates how corporate crypto strategies have developed through its use of advanced financial instruments which allow companies to manage their digital asset market risks while maintaining liquidity and generating returns.
