Why GameStop Put $315 Million in Bitcoin Into a Covered Call Options Strategy
GameStop transferred nearly all its Bitcoin holdings—4,709 BTC worth about $315 million—into a covered call options strategy on Coinbase Prime, keeping only 1 BTC in reserve. This reclassified the holdings from an intangible asset to a receivable, changing how gains or losses appear in earnings reports. The covered call strategy allows GameStop to generate income from premiums while capping potential upside if Bitcoin's price rises above the strike price. Under its collateral agreement, Coinbase Prime can sell or rehypothecate the Bitcoin, but GameStop retains economic exposure equivalent to direct ownership. Originally purchasing the BTC in May 2025 after a $1.5 billion convertible note offering, GameStop has seen its holdings’ value fall from purchase levels amid recent Bitcoin price declines. This move follows a trend started by other companies using Bitcoin as a treasury asset. CEO Ryan Cohen has alluded to other acquisition opportunities beyond Bitcoin, without committing to selling the holdings.
