GameStop Pledges Bitcoin to Coinbase for Call Options

GameStop Corp. disclosed in its annual report filed with the Securities and Exchange Commission on Tuesday that it had pledged nearly all of its Bitcoin holdings as collateral to Coinbase in January, using the cryptocurrency to execute a covered call options strategy rather than selling the assets. The video game retailer transferred 4,709 of its 4,710 Bitcoin to Coinbase Credit under an over-the-counter agreement, leaving just one coin directly held.

The move, which generated speculation about a potential exit from Bitcoin when on-chain analysts observed the transfer to Coinbase Prime in January, instead aimed to produce income from option premiums while preserving economic exposure to the cryptocurrency. GameStop wrote short-dated call options on the pledged Bitcoin, with strike prices ranging from $105,000 to $110,000 and expiration dates extending through late March 2026. Under the strategy, the company collects premiums upfront. If Bitcoin's price remains below the strike levels at expiration, the options expire worthless, allowing GameStop to retain the premiums and reclaim the collateral. Should prices exceed the strikes, the company would deliver Bitcoin at the fixed...