GameStop’s Bitcoin Strategy: A Move That May Frustrate BTC Enthusiasts

GameStop recently made headlines when on-chain trackers revealed the movement of $324 million worth of Bitcoin from its wallets to Coinbase. While many speculated that this was a massive sell-off, filings with the SEC indicate that the company still retains some exposure to Bitcoin, although not in the manner most traders might anticipate.

Key Takeaways

GameStop has transferred $324 million worth of Bitcoin to Coinbase but maintains some exposure through a covered call strategy.
The company now officially owns 1 BTC, having pledged the majority of its holdings as collateral for options.
This strategy results in immediate cash flow but limits potential upside benefits from Bitcoin’s price increase.
GameStop's financial strategy reflects the challenges of declining sales in the gaming industry.
The evolving use of Bitcoin among corporations signifies a trend toward more active financial management rather than simple holding.

Bitcoin

Understanding GameStop's Covered Call Strategy

Based on its latest 10-K filing, GameStop now officially holds only 1 BTC. Instead of liquidating the 4,710 BTC it purchased in January of last year, the gaming retailer has pledged 4,709 of those Bitcoins to Coinbase as part of a covered call strategy. This move has netted them approximately $368 million in cash, but it limits potential gains beyond roughly $105,000–$110,000 per Bitcoin.

A covered call is an options strategy where the owner of an asset sells call options against that asset to earn premium income. However, this strategy places a ceiling on potential profits if the asset’s price increases significantly. GameStop’s approach involved giving Coinbase nearly all its Bitcoin as collateral while selling call options on that collateral. In return, the company received immediate cash premiums and a receivable, rather than holding a volatile asset on its balance sheet.

This arrangement allows Coinbase to rehypothecate, mix, or even sell the pledged Bitcoins, which is why accounting regulations require GameStop to remove the coins from its balance sheet and instead record a “digital asset receivable.”

Unlike traditional corporate Bitcoin strategies that focus on long-term holdings, as seen with companies like MicroStrategy, GameStop is treating Bitcoin more like a yield-generating financial instrument rather than a steadfast investment.

GameStop's decision reflects the changing landscape of the gaming industry, where digital downloads are becoming more dominant. With a decline in sales from physical media and limited growth opportunities, the company is increasingly relying on financial strategies to generate income. GameStop has reported a revenue decline of about 25% year-over-year and approximately 14% in the last quarter of 2025. By handing over its Bitcoin to Coinbase and selling call options, GameStop aims to secure the cash it urgently needs right now.

The company’s actions signify a new trend in corporate Bitcoin adoption, where businesses do not just buy and hold assets but also actively lend, pledge, and utilize their coins for generating income, granting execution and rehypothecation authority to platforms like Coinbase.

Should Bitcoin surge past $100,000, GameStop shareholders might find that Coinbase and the options counterparties realize most of the benefits, while GameStop receives a more limited, fixed-income style return. This is an important consideration for traders when evaluating any investment thesis related to Bitcoin-linked equities.

Bitcoin, BTC, BTCUSD

Cover image from Perplexity, BTCUSD chart from Tradingview