SEC Filing Reveals GameStop Retained Its 4,710 Bitcoin Holdings Using Covered-Call Approach
Recent regulatory filings show GameStop used its entire Bitcoin portfolio, valued at $325 million, as collateral through Coinbase to execute a covered-call options strategy rather than liquidating its holdings.
On Tuesday, GameStop disclosed in regulatory filings that it had committed virtually its complete Bitcoin portfolio as collateral through Coinbase, utilizing this position as part of a covered call options strategy implemented in January, putting to rest two months of conjecture about whether the company had liquidated its cryptocurrency assets.
Within a 10-K annual filing submitted to the Securities and Exchange Commission on Tuesday, the gaming retail company disclosed that it committed 4,709 Bitcoin (BTC), representing almost its complete digital currency holdings, as collateral through an arrangement with Coinbase Credit, leveraging this position for selling covered call options contracts.
The regulatory disclosure from the SEC resolves uncertainty that emerged in January regarding GameStop potentially abandoning its Bitcoin holdings after blockchain data analysts observed the company transferring its complete Bitcoin position to Coinbase Prime.
Companies holding Bitcoin treasuries have encountered challenges in recent months as Bitcoin's value has declined 45% from its peak price, with certain market observers questioning last year whether strategies focused on buying and holding remain viable long-term.
The strategic decision demonstrates GameStop's pursuit of generating revenue from its Bitcoin portfolio through the sale of short-term call options contracts featuring strike prices ranging from $105,000 to $110,000, with expiration dates scheduled for Friday.
The regulatory submission reveals a $2.3 million unrealized profit alongside a $700,000 liability connected to these options positions, with certain covered-call agreements expiring without being exercised during January.
The covered call approach employed by GameStop allows the company to sell call options contracts that provide purchasers with the ability to acquire its Bitcoin at a predetermined price. GameStop collects option premiums and maintains ownership of the Bitcoin when the options remain unexercised.
GameStop directly holds just one Bitcoin now
Following GameStop's transfer of 4,709 Bitcoin to Coinbase, a counterparty possessing the ability to rehypothecate or repurpose the collateralized Bitcoin, GameStop no longer classifies these holdings as assets under direct ownership.
Using Bitcoin 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 continues to maintain ownership of one Bitcoin that was not designated for collateral purposes.
GameStop further disclosed that its collateralized Bitcoin position was valued at $368.3 million as of Jan. 31 and that the company documented an unrealized loss totaling $59.7 million on that particular date attributed to Bitcoin's declining market value.
GameStop initiated a Bitcoin treasury strategy following a meeting between its CEO, Ryan Cohen, and Strategy chair Michael Saylor in February 2025 to explore potential implementations of Bitcoin-based corporate strategies.
Before transferring the 4,709 Bitcoin to Coinbase, GameStop's cryptocurrency reserves positioned the company among the top 25 Bitcoin treasuries based on total holdings.