GameStop disclosed in its fiscal 2025 10-K filing with the SEC on March 24, 2026 that it had pledged 4,709 of its 4,710 bitcoins as collateral to Coinbase Credit to execute a covered call options strategy, confirming the company maintained its position rather than selling it. The filing covers the period ending January 31, 2026, and details how the company transferred its entire bitcoin portfolio to Coinbase Prime around January 16, 2026, a move that had triggered widespread speculation about a crypto exit.
Strategy Mechanics and Accounting Treatment
Under the Security Agreement with Coinbase Credit, GameStop sold over-the-counter covered call options on 4,709 BTC — representing 99.98% of its holdings — with strike prices ranging from $105,000 to $110,000 per coin and maturities extending to March 27, 2026. Only one bitcoin remained directly on the company's balance sheet. Because Coinbase Credit has the right to rehypothecate, commingle or sell the pledged bitcoin, GameStop determined that control of the assets had transferred. Under U.S. GAAP, it derecognized the 4,709 BTC and recorded a digital asset receivable valued at $428 million at the time of derecognition and $368.3 million as of January 31, 2026.
Financial Impact and Market Performance
For fiscal 2025, GameStop reported a total loss of $131.6 million from digital assets and related receivables, representing 3.6% of net sales. This breaks down into a realized loss of $71.8 million from the derecognition, an unrealized loss of $59.7 million on the receivable reflecting the decline in bitcoin's price, and a $0.1 million impairment loss on retained coins. The options generated an unrealized gain of $2.3 million, partially offset by a derivative liability of $0.7 million. At the time of filing, bitcoin traded between $68,000 and $69,000, far below the strike prices of $105,000-$110,000, rendering the call options out-of-the-money. This meant GameStop was on track to retain the option premiums as income if prices remained stable until expiration.
Risks and Contrast with Other Strategies
The 10-K lists several risks tied to the strategy, including bitcoin price volatility, credit exposure to Coinbase, rehypothecation risk that obscures legal ownership of collateral, and general regulatory and accounting uncertainty surrounding crypto assets. This approach contrasts with companies like Strategy (formerly MicroStrategy), which pursue unlimited bitcoin accumulation without derivative overlays. GameStop's structure is geared toward premium income, but the position sits at an unrealized loss relative to its cost base. No additional information about post-expiration activity or new option contracts has been disclosed.
GameStop originally purchased 4,710 BTC in May 2025 for approximately $500 million in cash, at an average cost of $106,000-$107,900 per coin. The board had amended its investment policy in March 2025 to include bitcoin and U.S. dollar-pegged stablecoins as treasury reserve assets. The filing also notes that the company's economic exposure 'remains consistent with direct ownership of the underlying bitcoins.'