TLDR
- GameStop pledged 4,709 of its 4,710 Bitcoin to Coinbase as collateral for a covered-call options strategy
- The move was aimed at earning income through option premiums, not selling its BTC holdings
- Call options were written with strike prices between $105,000 and $110,000, expiring in late March
- GameStop no longer directly holds the Bitcoin — it now records a receivable of $368.3 million
- The filing showed a $2.3 million unrealized gain and a $59.7 million unrealized loss from Bitcoin’s price drop
GameStop (GME) stock was in focus after the company filed its annual 10-K report with the SEC, revealing it had pledged nearly all of its Bitcoin to Coinbase — not sold it, as many had speculated.
The disclosure ended two months of guesswork that began in January when onchain analysts spotted GameStop moving its entire Bitcoin stack to Coinbase Prime.
GameStop built its Bitcoin treasury after CEO Ryan Cohen met with Strategy chair Michael Saylor in February 2025 to discuss Bitcoin treasury strategies. At its peak, the stash ranked in the top 25 Bitcoin treasuries by size.
The company held 4,710 Bitcoin in total. It pledged 4,709 of those coins to Coinbase Credit under an over-the-counter covered-call arrangement. One Bitcoin remains directly held.
GameStop wrote short-dated call options on its Bitcoin with strike prices between $105,000 and $110,000. The contracts were set to expire in late March 2026.
The goal was to earn income from option premiums. If Bitcoin’s price stays below the strike price, the options expire worthless and GameStop keeps the premium. If prices rise above the strike, the upside is capped.
The filing reported a $2.3 million unrealized gain and a $700,000 liability tied to the options. Some covered-call contracts had already expired unexercised by the time of the filing.
How the Accounting Changed
Because Coinbase can rehypothecate — or reuse — the pledged Bitcoin, GameStop can no longer count those coins as directly held assets. The accounting treatment shifted accordingly.
The company now records a digital asset receivable instead. That’s the right to reclaim equivalent Bitcoin later, rather than holding the coins outright.
GameStop’s receivable linked to the pledged Bitcoin was valued at $368.3 million at the fiscal year end of January 31. The company also booked a $59.7 million unrealized loss, reflecting Bitcoin’s price decline from its highs.
GameStop said its “economic exposure is consistent with direct ownership of the underlying Bitcoin,” even though the classification changed. The coins are now tied to a counterparty and linked to derivatives.
Why the Move Raised Eyebrows
The Bitcoin treasury sector had been under pressure. Bitcoin fell roughly 45% from its all-time high, and analysts had started questioning the long-term viability of pure buy-and-hold strategies.
When GameStop’s wallet activity showed a large transfer to Coinbase Prime in January, it looked like a possible exit. The 10-K cleared that up.
The company did not exit its Bitcoin position. It used it as collateral to run an options income strategy, keeping exposure while generating premium revenue.
The filing confirmed that as of January 31, the pledged Bitcoin receivable stood at $368.3 million, with the $59.7 million unrealized loss on record.
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