GameStop disclosed in its fiscal 2025 Form 10-K filed with the U.S. Securities and Exchange Commission that it transferred 4,709 of its 4,710 bitcoin holdings to Coinbase Prime and pledged them to Coinbase Credit as collateral for an over-the-counter covered-call options strategy. The filing addresses earlier market speculation that the transfer signaled a liquidation, making clear that the move was operational rather than an outright sale.
Transfer did not mean the company exited bitcoin
According to the filing, the transfer took place on or around January 16, 2026. GameStop sold OTC covered calls against 4,709 BTC, representing 99.98% of its total holdings. The contracts carried strike prices between $105,000 and $110,000 per bitcoin and maturities running through March 27, 2026. A single 1 BTC remained directly on the company’s balance sheet.
GameStop originally bought the 4,710 BTC in May 2025 for about $500 million in cash, implying an average cost basis of roughly $106,000 to $107,900 per coin. Earlier, in March 2025, the board had updated the company’s investment policy to allow bitcoin and U.S. dollar-denominated stablecoins as treasury reserve assets.
How the covered-call structure works
A covered-call strategy allows a company to collect option premiums upfront while keeping economic exposure to the underlying asset below the strike price. If bitcoin stays below the strike at expiry, the options expire worthless and GameStop keeps the premiums. If bitcoin rises above the strike, the calls may be exercised, capping upside at the strike price plus the premiums received.
At the time of the filing, bitcoin was trading around $68,000 to $69,000, well below the stated strike range. That left the options out of the money, suggesting the company was positioned to retain the premium income if prices stayed broadly unchanged into expiration.
Why most of the BTC no longer appeared on the balance sheet
The filing also explains the accounting consequence of the arrangement. Because Coinbase Credit had the right to rehypothecate, commingle, or sell the pledged bitcoin, GameStop concluded that control over the assets had transferred. Under U.S. GAAP, it therefore derecognized the 4,709 BTC from its balance sheet and instead recorded a digital assets receivable. That receivable was valued at $428 million at derecognition and $368.3 million as of January 31, 2026.
This accounting treatment sharply reduced GameStop’s visibility in public rankings of corporate bitcoin holders, moving it from roughly 21st globally to around 190th. Even so, the company said its economic exposure remained consistent with direct ownership of the underlying bitcoin.
$131.6 million loss tied to digital assets and receivables
For fiscal 2025, GameStop recorded a total $131.6 million loss related to digital assets and associated receivables, equal to about 3.6% of net sales. The figure included a $71.8 million realized loss on derecognition, a $59.7 million unrealized loss tied to the decline in bitcoin’s price, and a roughly $0.1 million remeasurement loss on the one bitcoin still held directly.
The options position generated a $2.3 million unrealized gain, partly offset by a $0.7 million derivative liability. Taken together, the structure did not eliminate the company’s sensitivity to bitcoin volatility, but it did add premium income while limiting upside if the asset had rallied sharply above the strike range.
Regulatory and counterparty risks remain
GameStop also outlined several risks in the annual report, including bitcoin price volatility, counterparty credit exposure if Coinbase were to default, and rehypothecation risk that could complicate legal title over the collateral. The company further noted ongoing uncertainty in the regulatory and accounting treatment of crypto assets.
So far, GameStop has not issued a separate press release on the collateral arrangement, nor has it disclosed any additional bitcoin purchases or new options activity after the initial contracts expired. Compared with companies that pursue open-ended bitcoin accumulation, GameStop’s structure appears more focused on generating premium income through derivatives while maintaining economic exposure to the asset.