GameStop has recently clarified its stance on Bitcoin, revealing in a 10-K annual report submitted to the Securities and Exchange Commission on Tuesday that it has pledged nearly all of its Bitcoin holdings as collateral on Coinbase. This decision, made in January, has put an end to months of speculation regarding the company’s cryptocurrency strategy.
The report outlined that GameStop has utilized 4,709 Bitcoin (BTC) as collateral for covered call options, employing a strategy designed to generate additional income from its cryptocurrency assets. This move followed a period of uncertainty that began in January when on-chain analysts noted the complete transfer of GameStop’s Bitcoin holdings to Coinbase Prime, leading to questions about whether the company was preparing to divest its assets.
GameStop’s actions come amid a challenging environment for cryptocurrency, particularly Bitcoin, which has seen a significant decline, losing 45% of its value since reaching an all-time high. Analysts had previously conjectured about the viability of long-term holding strategies as market pressures mounted.
The company’s strategy involves selling short-dated call options with strike prices between $105,000 and $110,000, all set to expire Friday. This approach allows GameStop to earn premiums from the options, but if the contracts are not exercised, it retains ownership of the Bitcoin. The report revealed that the company is currently facing a $2.3 million unrealized gain alongside a $700,000 liability linked to these options, although some contracts had expired unexercised back in January.
In a significant shift, GameStop will no longer count the pledged Bitcoin as directly held assets since they are now in the hands of a counterparty that can ‘rehypothecate’ or repurpose the collateral. According to GameStop, this pledge resulted in what it terms the “derecognition of the pledged digital assets” and the establishment of a digital asset receivable on its balance sheet. Nonetheless, the company asserted that its “economic exposure is consistent with direct ownership of the underlying Bitcoin.”
Interestingly, GameStop now holds just a single Bitcoin that was not pledged as collateral. The report noted that as of January 31, the value of the pledged Bitcoin stood at approximately $368.3 million, which reflects a $59.7 million unrealized loss due to Bitcoin’s downward pricing movement.
GameStop’s foray into cryptocurrency began when CEO Ryan Cohen engaged with Strategy chair Michael Saylor in February 2025 to explore potential Bitcoin strategies. Prior to the transfer of its Bitcoin assets to Coinbase, GameStop was among the top 25 companies in terms of Bitcoin treasury holdings, illustrating its previous significant involvement in the cryptocurrency space.
