GameStop Pledges 4,709 of 4,710 BTC as Collateral for Covered Call Strategy with Coinbase

GameStop has pledged all but 1 of their 4,710 Bitcoin as collateral to execute a covered call strategy with Coinbase.

The video game retailer originally purchased 4,710 Bitcoin in May 2025 for roughly 500 million dollars using its available cash. Less than a year later the company transferred the entire stack to Coinbase Prime and entered into a collateral agreement that placed 4,709 of those coins with Coinbase Credit Inc. At the same time GameStop sold over-the-counter covered call options on almost the full position with strike prices ranging from 105,000 dollars to 110,000 dollars and maturities running through late March 2026.

Because the agreement gives Coinbase the right to rehypothecate, commingle or even sell the pledged Bitcoin, the company was required to remove those 4,709 coins from its balance sheet as direct assets. In their place GameStop now carries a digital assets receivable valued at 368.3 million dollars as of the end of January 2026. The company technically still owns 1 Bitcoin that remains recorded directly on the books.

Due to this accounting change BitcoinTreasuries.net has updated GameStop holdings to reflect the new reality causing the company to fall dramatically from the 21st largest public company Bitcoin holder to around 190th place.

Economically the retailer retains nearly full exposure to movements in Bitcoin’s price through that receivable. The covered call overlay however changes the profile of the position. GameStop collected upfront option premiums that provide some income while the calls remain open. If Bitcoin trades below the strike levels at expiration the options simply expire and the company keeps the premium. Should Bitcoin surge well above 105,000 to 110,000 dollars the calls are likely to be exercised effectively forcing delivery of the Bitcoin at the capped strike price plus the premium already received.

This approach stands in contrast to the straightforward long-term accumulation favored by other corporate Bitcoin holders such as Strategy. While GameStop still benefits or suffers from price changes on nearly its entire original stack the strategy introduces a ceiling on upside participation in exchange for near-term yield. The arrangement also contributed to a reported 131.6 million dollar loss on digital assets and related receivables for the fiscal year driven largely by the accounting impact of derecognition and the decline in Bitcoin’s value after the pledge.

On-chain records showing the full transfer to Coinbase Prime earlier this year initially sparked speculation of an outright sale but the structure now appears tied directly to the collateral and options program rather than a complete exit. No further updates on the exact status of the position have been released since the end of January and the company has not issued a separate statement on the strategy.

GameStop’s move illustrates a more tactical and income-oriented use of Bitcoin within a corporate treasury rather than a pure hodl commitment. Whether this represents a short-term overlay or a longer-term shift in approach remains to be seen as the covered calls approach their March expirations and market conditions continue to evolve.

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