GameStop revealed on Tuesday that it pledged nearly all of its Bitcoin as collateral on Coinbase as a part of a lined name technique in January, ending two months of hypothesis about whether or not it had bought the cash.
In a 10-Okay annual report back to the Securities and Trade Fee on Tuesday, the online game retailer revealed it pledged 4,709 Bitcoin (BTC), almost all of its Bitcoin, as collateral below an settlement with Coinbase Credit score, utilizing the place to promote lined name choices.
The SEC submitting clears hypothesis from January that GameStop was getting ready to exit its Bitcoin place after onchain analysts identified that it transferred its whole Bitcoin holdings to Coinbase Prime.
The Bitcoin treasury trade has confronted strain in current months as Bitcoin has fallen 45% from its all-time excessive, with some analysts casting doubt final yr on the sustainability of buy-and-hold methods.
The transfer exhibits GameStop sought to earn earnings on its Bitcoin by inserting short-dated name choices with strike costs between $105,000 and $110,000 which might be set to run out Friday.
The disclosure exhibits a $2.3 million unrealized acquire and a $700,000 legal responsibility tied to the choices, whereas some covered-call contracts expired unexercised in January.
GameStop’s lined name technique permits it to promote name choices that give consumers the best to buy its Bitcoin at a hard and fast value. GameStop earns premiums and retains the Bitcoin if the choices are usually not exercised.
GameStop immediately holds only one Bitcoin now
Since GameStop moved 4,709 Bitcoin to Coinbase, a counterparty that may rehypothecate or reuse the pledged Bitcoin, GameStop is now not counting these belongings as immediately held.
Placing Bitcoin up as collateral “resulted within the derecognition of the pledged digital belongings and the corresponding recognition of a digital asset receivable,” GameStop stated within the submitting.
“Though the classification of those belongings has modified, our financial publicity is in line with direct possession of the underlying Bitcoin,” it added.
GameStop nonetheless holds one Bitcoin that wasn’t put up for collateral.
GameStop added that its pledged Bitcoin was price $368.3 million by Jan. 31 and that it recorded an unrealized lack of $59.7 million on that date due to Bitcoin’s value drop.
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GameStop launched a Bitcoin treasury after its CEO, Ryan Cohen, met with Technique chair Michael Saylor in February 2025 to debate how Bitcoin methods will be applied.
Previous to shifting the 4,709 Bitcoin to Coinbase, GameStop’s Bitcoin stash ranked within the prime 25 Bitcoin treasuries by holding dimension.
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