GameStop has recently announced that it has allocated 4,709 $BTC to a covered-call strategy on Coinbase Prime. This decision grants the exchange the authority to either rehypothecate or sell these coins.
This strategic shift reclassifies GameStop’s Bitcoin holdings from being intangible assets to receivables, which will significantly alter how gains and losses are reported in their earnings statements.
The video game retailer revealed this week that it transferred nearly all of its Bitcoin treasury—except for 1 $BTC—into a covered call options framework on Coinbase Prime.
This move means that the 4,709 $BTC, valued at approximately $315 million at present, is now categorized as a receivable rather than an intangible asset on GameStop’s balance sheet. This reclassification is crucial because it impacts how Bitcoin-related gains and losses will be reflected in GameStop’s quarterly financial results.
Since the beginning of this year, companies holding Bitcoin have been relatively quiet. The price of $BTC started around $87,000 but has struggled to maintain levels above $70,000 since February. Currently, according to CoinGecko—a cryptocurrency price aggregator—Bitcoin is trading at about $67,000 after experiencing a 5% decline over the past week.
The increased volatility in cryptocurrency markets has put pressure on firms with substantial amounts of $BTC. GameStop initially invested over $500 million into acquiring its Bitcoins last May but has seen significant depreciation in value recently.
In its report, GameStop indicated that under the terms of their collateral agreement with Coinbase Prime, they have granted permission for Coinbase to “rehypothecate,” combine with other assets or unilaterally sell their Bitcoin holdings if necessary.
This indicates that while GameStop hasn’t sold its Bitcoins yet—it retains ownership—the possibility exists for such action down the line.
“Despite this change in asset classification,” stated the company in its annual report filed with SEC Form 10-K,” our economic exposure remains consistent with direct ownership of our underlying Bitcoins.”
A covered call strategy involves an investor who possesses an asset—in this case, Bitcoin—selling a call option to another party. This option allows them to purchase said asset at a predetermined strike price within a specified timeframe. In return for selling this option upfront; investors receive premium income from what would otherwise remain idle on their balance sheets.
If Bitcoin’s market value exceeds the strike price during this period; then buyers can exercise their options and acquire bitcoins at lower prices agreed upon earlier—limiting potential profits for sellers. Conversely; if prices remain below expectations—the options expire worthless allowing holders like GameStop not only retain both premiums but also keep hold of their bitcoins intact!
By using almost all available BTC as collateral through Coinbase Prime’s strategies; it appears as though Gamestop anticipates no major spikes occurring soon enough triggering these contracts—and instead hopes benefiting from yield collection along way!
The initial acquisition took place back when they completed issuing convertible senior notes worth up-to-$1 billion just one month prior (May ’25).
Cohen hinted towards exploring bitcoin investments after sharing photos alongside Strategy Chairman Michael Saylor via social media platform X where he discussed various opportunities surrounding cryptocurrencies! As pioneers behind establishing treasury models focused solely around digital currencies—they currently lead corporate holdings boasting around $51 billion worth BTC today!
Since August ’20 when Strategy first recognized bitcoin officially classified under treasuries—as more businesses followed suit raising capital through equity programs & preferred stock issuances—all investing heavily into crypto-assets alike utilizing similar methods employed by Strategy itself!
However doubts regarding commitment levels towards BTC amongst some companies have surfaced lately too…
Around February ‘26 Cohen was asked whether there were any plans concerning liquidating existing stash? He refrained commenting directly while suggesting other ventures seemed “far more compelling” than sticking strictly within realm crypto alone…