Why Did GameStop Move Its Bitcoin to Coinbase?
GameStop disclosed that it pledged 4,709 Bitcoin as collateral with Coinbase Credit as part of a covered call strategy, resolving speculation that followed the transfer of its holdings to Coinbase Prime earlier this year. The move, detailed in a 10-K filing with the Securities and Exchange Commission, shows the company did not liquidate its position but instead used it to generate income.
The retailer transferred nearly all of its Bitcoin holdings under an agreement that allows Coinbase to reuse or rehypothecate the collateral. As a result, GameStop no longer classifies these assets as directly held on its balance sheet.
The filing stated that the transaction “resulted in the derecognition of the pledged digital assets and the corresponding recognition of a digital asset receivable.”
How Does the Covered Call Strategy Work?
GameStop used its Bitcoin position to sell short-dated call options with strike prices between $105,000 and $110,000. These contracts, set to expire within a short timeframe, allow buyers to purchase Bitcoin at a fixed price if the market moves higher.
By selling these options, GameStop collects premiums while retaining its Bitcoin exposure if the contracts expire unexercised. Some of the options expired in January without being exercised, generating income without requiring asset delivery.
The strategy reflects a shift from passive holding toward yield generation, particularly as Bitcoin has declined around 45% from its all-time high, increasing pressure on treasury strategies that rely solely on price appreciation.
Investor Takeaway
What Are the Accounting and Balance Sheet Implications?
Because the Bitcoin was pledged as collateral, GameStop no longer records the assets as directly owned. Instead, it recognizes a receivable tied to the collateralized position, even though its economic exposure remains linked to Bitcoin’s price movements.
“Although the classification of these assets has changed, our economic exposure is consistent with direct ownership of the underlying Bitcoin,” the company said.
The disclosure showed a $2.3 million unrealized gain alongside a $700,000 liability tied to the options positions. At the same time, the company recorded an unrealized loss of $59.7 million as of Jan. 31 due to the decline in Bitcoin’s market price.
GameStop now directly holds just one Bitcoin, with the remainder tied up in the collateralized structure.
Investor Takeaway
What Does This Signal for Bitcoin Treasury Strategies?
GameStop’s approach highlights a broader change in how companies manage digital asset reserves. Instead of treating Bitcoin as a long-term store of value, firms are exploring ways to generate yield through derivatives and structured strategies.
The move follows increased scrutiny of corporate Bitcoin treasuries, particularly as price volatility has challenged buy-and-hold approaches. Companies that adopted Bitcoin as a balance sheet asset are now under pressure to justify capital allocation and manage drawdowns more actively.
GameStop entered the Bitcoin treasury space in 2025 after CEO Ryan Cohen met with Strategy chair Michael Saylor to explore implementation strategies. Prior to the collateral transfer, the company ranked among the top 25 corporate Bitcoin holders.
The shift toward options-based income suggests that treasury strategies are evolving toward active management, where returns are driven by both market exposure and derivatives-based yield.
