Why GameStop Put $315 Million in Bitcoin Into a Covered Call Options Strategy

Video crippled retailer GameStop disclosed this week that it moved each but 1 BTC worthy of its Bitcoin treasury holdings into a covered telephone options strategy connected Coinbase Prime.

By doing so, the 4,709 BTC stash—worth astir $315 cardinal arsenic of this writing—has go a receivable alternatively than an intangible plus connected the company's equilibrium sheet. The reclassification matters, due to the fact that it'll alteration however Bitcoin gains and losses travel done GameStop's quarterly earnings.

Bitcoin treasury companies person been relatively quiescent since the commencement of the year. The terms of BTC started the twelvemonth astir $87,000, but has struggled to enactment supra $70,000 since February. At the clip of writing, Bitcoin was changing hands for astir $67,000 aft having dropped 5% successful the past week, according to crypto terms aggregator CoinGecko.

The heightened volatility has enactment companies with BTC connected their equilibrium sheets nether strain. GameStop, which primitively spent much than $500 cardinal buying its BTC past May, has seen the worth of its holdings driblet substantially successful caller months.

GameStop noted successful its study that the presumption of the collateral statement mean that Coinbase Prime has the close to "rehypothecate, commingle, oregon unilaterally sell" the retailer's Bitcoin.

That means GameStop didn't merchantability its Bitcoin—but it could beryllium sold.

"Although the classification of these assets has changed, our economical vulnerability is accordant with nonstop ownership of the underlying Bitcoin," the institution said successful its 10-K yearly report with the SEC.

In a covered telephone strategy, an capitalist who holds an asset—in this case, Bitcoin—sells a telephone enactment to a counterparty. The enactment gives the counterparty the close to bargain the plus astatine a predetermined price, called the onslaught price, wrong a acceptable timeframe. In exchange, the holder receives a premium upfront, generating income connected an plus that would different conscionable beryllium connected a equilibrium sheet.

If Bitcoin's terms rises supra the onslaught price, past the counterparty tin workout the enactment and get the Bitcoin astatine the little agreed-upon price, capping the holder's upside. If Bitcoin stays beneath the onslaught price, past the enactment expires worthless and GameStop keeps the premium—plus its Bitcoin.

By pledging astir each of its BTC arsenic collateral for the strategy done Coinbase Prime, GameStop is fundamentally betting that Bitcoin won't rally sharply capable to trigger the options—collecting output successful the interim.

The institution primitively purchased the Bitcoin successful May 2025 aft completing a $1.5 cardinal offering of convertible elder notes to investors the period before.

GameStop CEO Ryan Cohen had hinted astatine the foray into acquiring Bitcoin by posing adjacent to Strategy Chairman Michael Saylor successful a photograph connected X. Strategy pioneered the Bitcoin treasury model, and remains the biggest firm holder by acold with astir $51 cardinal worthy of BTC arsenic of this writing.

Since Strategy archetypal classified Bitcoin arsenic a treasury plus successful August 2020, galore companies person followed its lead—raising superior done ATM equity programs, convertible notes, and preferred banal issuances, past deploying it into Bitcoin. Strategy has utilized each three.

But determination person been caller questions astir the company's BTC conviction.

In February 2026, GameStop's Cohen was asked by CNBC if the institution was considering selling its Bitcoin stash. Cohen declined to say, but alluded to the company's acquisition ambitions arsenic “way much compelling than Bitcoin.”