GameStop Converts $368 Million Bitcoin into Options Income Strategy

Odaily News GameStop disclosed that the approximately 4,710 BTC it previously transferred to Coinbase Prime was not for sale, but rather used as collateral to participate in a covered call strategy to generate option premium income.

The company sold short-term call options through over-the-counter (OTC) transactions, with strike prices ranging from $105,000 to $110,000, aiming to generate income while retaining Bitcoin exposure, though this also caps potential upside gains.

Due to this structure, GameStop no longer directly holds Bitcoin assets. Instead, it records them as "receivable assets," representing the right to reclaim equivalent BTC from the counterparty in the future. Since the collateral assets can be rehypothecated or reused, its position has transformed into a derivative exposure carrying counterparty risk.

Financial reports show that as of the fiscal year-end, the value of receivable assets related to this strategy was approximately $368.3 million, while an unrealized loss of about $59.7 million was recorded (due to the decline in Bitcoin price). Additionally, the company recognized approximately $700,000 in option liabilities and $2.3 million in unrealized gains.