GameStop has disclosed in its fiscal 2025 annual report filed with the U.S. Securities and Exchange Commission that it pledged 4,709 of its 4,710 bitcoin to Coinbase Credit as collateral for an over-the-counter covered call strategy. The filing provides a clearer explanation for earlier speculation surrounding the transfer of the company’s bitcoin to Coinbase Prime, confirming that the move was operational rather than a direct liquidation of the position.
A Transfer, Not an Exit
According to the Form 10-K filed on March 24, 2026 for the fiscal year ended January 31, 2026, GameStop transferred its entire bitcoin wallet to Coinbase Prime around January 16, 2026. That transfer had fueled market rumors that the company might be unwinding its BTC holdings. The filing, however, states that the company maintained economic exposure to bitcoin and used the transfer in connection with a collateralized options strategy.
Under a security agreement with Coinbase Credit, Inc., GameStop sold OTC covered call options on 4,709 BTC, representing 99.98% of its bitcoin holdings. The contracts carried strike prices ranging from $105,000 to $110,000 per BTC, with expirations extending through March 27, 2026. Only one bitcoin remained directly on the company’s balance sheet.
How the Strategy Worked
GameStop originally acquired 4,710 BTC in May 2025 for approximately $500 million in cash, implying an average purchase cost of roughly $106,000 to $107,900 per coin. The company had previously amended its investment policy in March 2025 to include bitcoin and U.S. dollar-denominated stablecoins as eligible treasury reserve assets.
A covered call strategy allows a bitcoin holder to collect option premium upfront while keeping exposure to the asset below the strike price. If bitcoin stays below the strike at expiration, the options expire worthless and the seller keeps the premium. If bitcoin rises above the strike, the calls may be exercised, capping the seller’s upside at the strike price plus the premium received. In GameStop’s case, the strategy appears designed to generate income from premiums while retaining downside and partial upside exposure tied to the underlying BTC position.
Why the Bitcoin Left the Balance Sheet
The filing also explains why GameStop’s bitcoin effectively disappeared from its reported holdings. Because Coinbase Credit had the right to rehypothecate, commingle, or sell the pledged bitcoin, GameStop concluded that control over the assets had transferred for accounting purposes. Under U.S. GAAP, the company therefore derecognized the 4,709 BTC from its balance sheet and recorded a digital asset receivable instead.
That receivable was measured at $428 million at the time of derecognition and had fallen to $368.3 million as of January 31, 2026. The accounting treatment materially changed how GameStop appeared in public rankings of corporate bitcoin holders, reportedly pushing the company from around 21st globally to approximately 190th. Even so, GameStop said its economic exposure remained broadly consistent with direct ownership of the underlying bitcoin.
Losses, Premium Income, and Market Conditions
For fiscal 2025, GameStop recorded a total of $131.6 million in losses tied to digital assets and related receivables, equal to about 3.6% of net sales. The figure included a $71.8 million realized loss from derecognition, a $59.7 million unrealized loss on the digital asset receivable as bitcoin prices fell, and a roughly $0.1 million remeasurement loss on the small portion of bitcoin retained directly. At the same time, the options position generated an $2.3 million unrealized gain, partially offset by a $0.7 million derivative liability.
When the filing was made, bitcoin was trading around $68,000 to $69,000, well below the $105,000 to $110,000 strike range. That meant the covered calls were out of the money at that point. If the market had remained below those levels into expiration, GameStop would likely have retained the premiums as income without having its BTC called away.
Risks Highlighted in the Filing
GameStop outlined several risks associated with the structure. These included bitcoin price volatility, counterparty credit exposure if Coinbase were to default, and legal or practical uncertainty created by rehypothecation rights over the collateral. The filing also noted broader regulatory and accounting uncertainty affecting cryptoassets generally.
Those disclosures are especially important because the arrangement was not accompanied by a dedicated press release. Instead, the details emerged through the SEC filing and through on-chain tracking observed earlier in the year. As of the information contained in the filing, GameStop had not announced additional bitcoin purchases, nor had it disclosed whether it entered into new options contracts after the original covered calls expired.
A Different Corporate Bitcoin Playbook
GameStop’s approach stands out against the more straightforward accumulation model embraced by some corporate bitcoin holders. Rather than simply keeping BTC on its balance sheet without overlays, GameStop used its holdings in a premium-generating derivatives strategy. That makes its bitcoin policy more income-oriented, though also more complex from both an accounting and risk-management perspective.
The filing suggests that the company was willing to accept capped upside in exchange for premium income while preserving economic exposure below the strike price. At the same time, the structure introduced counterparty and accounting consequences that made the underlying holdings less visible on the balance sheet. For investors and market observers, the disclosure offers a rare look at how a public company can use bitcoin not only as a treasury reserve asset, but also as collateral in a more active financial strategy.
Whether GameStop continues down that path remains unclear. The company has not disclosed any post-expiration adjustments, renewed covered call activity, or a broader shift in its bitcoin treasury framework. Still, the annual report confirms one central point: GameStop did not simply sell its bitcoin. Instead, it used nearly all of it as collateral in a covered call structure intended to monetize its holdings while retaining core economic exposure to the asset.