Video game retailer GameStop has made a significant adjustment to its financial strategy this week, announcing that it has moved nearly all of its Bitcoin treasury holdings—comprising 4,709 BTC—into a covered call options strategy on Coinbase Prime, retaining only 1 BTC. This move reclassifies the company’s substantial Bitcoin reserves, valued at approximately $315 million, from an intangible asset to a receivable on its balance sheet. This reclassification is important as it will alter how Bitcoin-related gains and losses are reported in GameStop’s quarterly earnings.
The announcement comes at a time when volatility in the cryptocurrency market has put significant pressure on companies holding Bitcoin. At the beginning of the year, BTC was trading at around $87,000 but has faced challenges, struggling to maintain levels above $70,000 since February. Currently, Bitcoin is valued at about $67,000, having dropped 5% over the past week, according to data from crypto price aggregator CoinGecko.
GameStop’s Bitcoin strategy, which was initiated with over $500 million in purchases last May, observes a substantial decrease in value recently. The company’s 10-K annual report reveals detailed information about its arrangement with Coinbase Prime, stating that the exchange has the right to “rehypothecate, commingle, or unilaterally sell” GameStop’s Bitcoin. Although the retailer has not sold its Bitcoin directly, the possibility for such an action remains.
In implementing a covered call options strategy, GameStop sells a call option on its Bitcoin holdings to another party. This transaction offers the counterparty the right, but not the obligation, to purchase the Bitcoin at a predetermined price within a specific timeframe. In return, GameStop receives an upfront premium—this helps generate income from the holdings rather than allowing them to simply remain static on the balance sheet. If Bitcoin’s price rises beyond the strike price, the counterparty can exercise the option and buy the Bitcoin at the lower agreed price, effectively capping GameStop’s potential gains. Conversely, if the price remains below that threshold, the option expires worthless, allowing GameStop to retain both the premium and its Bitcoin.
By using virtually all its Bitcoin as collateral for this strategy through Coinbase Prime, GameStop appears to be betting on the expectation that Bitcoin prices will not experience a significant rally that would trigger the options. This approach facilitates the generation of yield from its Bitcoin holdings while maintaining the potential for future ownership.
The company’s initial acquisition of Bitcoin occurred in May 2025 following a $1.5 billion offering of convertible senior notes. GameStop’s CEO, Ryan Cohen, has also hinted at a strategic interest in cryptocurrency by being seen alongside prominent figures such as MicroStrategy’s Michael Saylor, who has been a strong advocate for Bitcoin treasury holdings.
Since the introduction of Bitcoin as a treasury asset classification by MicroStrategy in August 2020, numerous companies have adopted similar strategies, raising funds through various means, including equity programs and convertible notes, for investing in Bitcoin. However, questions surrounding GameStop’s commitment to the cryptocurrency have surfaced. In a recent interview, Cohen was asked if GameStop was considering disposing of its Bitcoin holdings; he refrained from providing a definitive answer but indicated that the company may pursue acquisition strategies that are “way more compelling” than Bitcoin itself.
