GameStop converts $368 million worth of Bitcoin into an options income strategy

Odaily Planet Daily reports that GameStop disclosed that the approximately 4,710 BTC previously transferred to Coinbase Prime were not sold but used as collateral in a covered call strategy to earn option premium income.

The company sold short-term call options over-the-counter (OTC) with strike prices ranging from $105,000 to $110,000, maintaining Bitcoin exposure while generating income, but also limiting upside potential.

Due to this structure, GameStop no longer directly holds Bitcoin assets but records them as “receivables,” meaning the right to recover an equivalent amount of BTC from the counterparty in the future. Since collateral assets can be rehypothecated or reused, its position has shifted to a derivative exposure with counterparty risk.

Financial statements show that as of the end of the fiscal year, the receivable assets related to this strategy were valued at approximately $368.3 million, with an unrealized loss of about $59.7 million (due to Bitcoin price declines). Additionally, the company confirmed about $700,000 in option liabilities and $2.3 million in unrealized gains.