GameStop disclosed in a 10-K annual report filed with the Securities and Exchange Commission on Tuesday that it pledged 4,709 Bitcoin — nearly its entire holdings — as collateral under an agreement with Coinbase Credit. The filing ends roughly two months of speculation that the video game retailer had been exiting its Bitcoin position. That speculation arose in January after onchain analysts observed that GameStop had transferred its full Bitcoin holdings to Coinbase Prime.
The arrangement is part of a covered call options strategy through which GameStop sells call options, giving buyers the right to purchase its Bitcoin at a fixed price. The company earns premiums from selling those options and retains the Bitcoin if the options go unexercised. Short-dated call options with strike prices between $105,000 and $110,000 are set to expire this Friday, and some covered call contracts from January already expired without being exercised.
The SEC filing shows a $2.3 million unrealized gain and a $700,000 liability tied to the options position. Because Coinbase, as a counterparty, has the ability to rehypothecate or reuse the pledged Bitcoin, GameStop is no longer classifying those assets as directly held. The company recorded the change as a derecognition of the pledged digital assets and a corresponding recognition of a digital asset receivable.
GameStop addressed the accounting shift directly in the filing, stating that although the classification of the assets has changed, its economic exposure remains consistent with direct ownership of the underlying Bitcoin. The pledged Bitcoin was valued at $368.3 million as of January 31, though the company also recorded an unrealized loss of $59.7 million on that date due to a decline in Bitcoin’s price. GameStop still holds one Bitcoin that was not placed as collateral.
The broader Bitcoin treasury sector has faced headwinds in recent months, with Bitcoin falling 45% from its all-time high. Some analysts have questioned the long-term sustainability of straightforward buy-and-hold strategies, adding context to GameStop’s decision to pursue an income-generating approach through options. The covered call strategy represents an attempt to put idle Bitcoin holdings to work rather than simply holding them on the balance sheet.
GameStop launched its Bitcoin treasury after its CEO Ryan Cohen met with Strategy chair Michael Saylor in February 2025 to explore how Bitcoin strategies could be implemented at the company. Prior to transferring the 4,709 Bitcoin to Coinbase, GameStop’s holdings ranked among the top 25 corporate Bitcoin treasuries by size. The company’s move into Bitcoin drew significant attention from both retail investors and institutional observers tracking corporate adoption of the asset.
Originally reported by CoinTelegraph.
