GameStop has made a significant pivot in its cryptocurrency strategy, shifting the majority of its Bitcoin holdings into a covered call options strategy on Coinbase Prime. The company has pledged 4,709 BTC—valued at approximately $315 million—to this strategy, allowing Coinbase Prime the authority to rehypothecate or sell the coins.
This move reclassifies GameStop’s Bitcoin holdings from an intangible asset to a receivable on its balance sheet. This reclassification is impactful, as it alters the way gains and losses from Bitcoin will be reported in GameStop’s quarterly earnings. The change comes amid increased scrutiny of BTC market dynamics, as Bitcoin’s price has struggled to maintain stability, hovering around $67,000 currently after a 5% drop in the past week. Earlier this year, Bitcoin peaked around $87,000, thus placing substantial pressure on companies with significant BTC investments, including GameStop, which originally invested over $500 million to acquire its holdings.
While GameStop has not sold its Bitcoin outright, the terms of the collateral agreement afford Coinbase Prime the right to “rehypothecate, commingle, or unilaterally sell” the Bitcoin. In its 10-K annual report submitted to the SEC, GameStop reassured investors that despite the change in classification, “our economic exposure is consistent with direct ownership of the underlying Bitcoin.”
The strategy at play, a covered call, involves selling a call option on the Bitcoin held. This option permits the counterparty to purchase the asset at a predetermined strike price within a specified timeframe. The upfront premium received from selling the option generates income for GameStop. If the price of Bitcoin exceeds the strike price, the counterparty can exercise the option, thereby capping GameStop’s potential profits. Conversely, if Bitcoin remains below the strike price, the option expires worthless, allowing GameStop to retain both the premium and its Bitcoin.
By serving nearly all its Bitcoin as collateral through Coinbase Prime, GameStop is effectively wagering that the price of Bitcoin will not surge significantly enough to trigger the options, allowing the company to collect yield in the interim. GameStop first acquired the Bitcoin in May 2025, shortly after successfully completing a $1.5 billion offering of convertible senior notes.
There have been recent indicators that GameStop’s confidence in Bitcoin may be waning. When questioned in February 2026 by CNBC about the potential sale of the company’s Bitcoin holdings, CEO Ryan Cohen cryptically refrained from confirming any sale plans, instead suggesting that the company’s pursuit of other acquisitions may be “way more compelling” than Bitcoin. This suggests a shift in focus and an evolving strategy in how GameStop views its role in the cryptocurrency landscape.
As the market dynamics continue to shift, GameStop’s future engagement with Bitcoin and its cryptocurrency investments will be closely monitored by investors seeking insight into the larger implications for the retail and gaming industry.
