In a significant financial maneuver, video game retailer GameStop has transitioned nearly its entire Bitcoin treasury into a covered call options strategy, according to a recent report from Yahoo Finance. Executed through Coinbase Prime, this strategic shift leaves GameStop with only one Bitcoin in its direct holdings while reclassifying the remaining 4,709 Bitcoins—valued at around $315 million at the time of the announcement—on its balance sheet as receivables instead of intangible assets. This reclassification also influences how the gains and losses from the cryptocurrency will be portrayed in the company’s quarterly earnings.
The company’s Bitcoin acquisition occurred in May 2025, following a convertible senior notes offering, with the initial purchase exceeding $500 million. Under the terms established with Coinbase Prime, the platform has rights that may allow it to sell the retailer’s Bitcoin if necessary.
Implementing a covered call options strategy involves selling call options linked to the underlying Bitcoin holdings. This approach generates upfront premiums, allowing GameStop to generate income from assets that would largely remain dormant otherwise. If the Bitcoin price holds below a predetermined strike price, the options will expire worthless, enabling GameStop to keep both the premium and the Bitcoin. However, should the market price surge above the strike price, the counterparty may opt to purchase the Bitcoin at that lower price, thereby capping GameStop’s potential gains.
By leveraging its Bitcoin as collateral for this strategy, GameStop positions itself to yield returns while essentially hedging against a rapid increase in Bitcoin’s market value. Notably, the company has indicated that although the classification of its assets has changed, its economic exposure remains consistent with direct ownership.
The landscape for corporate Bitcoin treasuries has notably slowed since the beginning of the year. Bitcoin began the year priced around $87,000 but has struggled to maintain values above $70,000 since February. This volatility has affected many companies retaining Bitcoin on their balance sheets, with GameStop experiencing a significant devaluation of its holdings in recent months. As of the report, Bitcoin’s price stood approximately at $67,000, highlighting a drop over the last week.
