GameStop's SEC filing reveals it pledged nearly all its Bitcoin to Coinbase, ending speculation about sales and detailing a strategy to earn income from the assets.
GameStop has clarified that it did not sell its 4,709 Bitcoin holdings but instead pledged them as collateral to Coinbase as part of a covered-call strategy, according to a filing with the U.S. Securities and Exchange Commission.
The company transferred the Bitcoin in January, using it to secure call options with strike prices between $105,000 and $110,000, which are set to expire soon. This move allowed GameStop to earn premiums while retaining economic exposure to the assets.
Financial Details of the Pledge
As of January 31, the pledged Bitcoin was valued at $368.3 million. GameStop reported an unrealized gain of $2.3 million and a $700,000 liability related to the options, with some contracts expiring unexercised in January.
Since pledging the assets, GameStop no longer counts them as directly held, resulting in the derecognition of these digital assets and the recognition of a receivable. The company still holds one Bitcoin that was not pledged.
GameStop's decision followed a meeting between its CEO, Ryan Cohen, and Michael Saylor in February 2025, where they discussed implementing Bitcoin strategies. Prior to this, GameStop's Bitcoin stash ranked among the top 25 treasuries by size.
The broader Bitcoin market has faced volatility, with prices dropping 45% from all-time highs, but GameStop's filing provides specific insight into its approach to managing its holdings amid these conditions.
This strategy enables GameStop to generate income from its Bitcoin without selling it, as the pledged assets can be rehypothecated by Coinbase, though GameStop maintains consistent economic exposure as if it owned them directly.
