GameStop Bitcoin Position Maintained Through Coinbase Deal

GameStop pledged 4,709 Bitcoin valued at roughly $324 million as collateral instead of liquidating its holdings, preserving exposure while generating income. The disclosure counters earlier market speculation that the retailer had exited its crypto position.

The company detailed the arrangement in its latest annual filing, confirming a covered-call agreement with Coinbase’s lending arm, Coinbase Credit. Under the deal, GameStop sold call options on part of its Bitcoin holdings during the fourth quarter of fiscal 2025.

Does Covered Call Strategy Limit Bitcoin Upside?

The structure allows GameStop to collect premium income while maintaining downside exposure to bitcoin price movements. Strike prices between $105,000 and $110,000 cap potential gains above those levels, introducing a defined trade-off between income generation and upside participation.

Such strategies are more common in traditional finance, where institutions use options overlays to enhance yield on static holdings. But their application to corporate Bitcoin treasuries remains limited, with most firms opting for passive exposure rather than active derivatives management.

“In the fourth quarter of fiscal 2025, we entered into an agreement with Coinbase Credit, Inc., under which we sold covered call options on a portion of the bitcoin we own,” the company stated in its filing.

The contracts produced a $700,000 liability and approximately $2.3 million in unrealized gains as of Jan. 31.

Still, the agreement transferred control rights to Coinbase Credit, which can rehypothecate or sell the pledged assets, prompting GameStop to reclassify the Bitcoin as a $368.3 million receivable on its balance sheet. With the contract set to expire Friday and some options already lapsing unexercised, the next signal will be whether the company renews the strategy or reverts to direct custody exposure.