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GameStop revealed on Tuesday that it pledged nearly all of its Bitcoin as collateral on Coinbase as part of a covered call strategy in January, ending two months of speculation over whether it had sold the coins.
In a 10-K annual report to the Securities and Exchange Commission on Tuesday, the video game retailer <a href="https://www.sec.gov/Archives/edgar/data/1326380/000132638026000013/gme-20260131.htm" rel="noopener noreferrer nofollow">revealed</a> it pledged 4,709 Bitcoin (<a rel="noopener noreferrer nofollow">BTC</a>), nearly all of its Bitcoin, as collateral under an agreement with Coinbase Credit, using the position to sell covered call options.
The SEC filing clears speculation from January that GameStop was preparing to exit its Bitcoin position after onchain analysts pointed out that it <a href="https://cointelegraph.com/news/gamestop-moves-bitcoin-signaling-potential-sale" rel="noopener noreferrer nofollow">transferred its entire Bitcoin holdings</a> to Coinbase Prime.
The Bitcoin treasury industry has faced pressure in recent months as Bitcoin has fallen 45% from its all-time high, with some <a rel="noopener noreferrer nofollow">analysts casting doubt</a> last year on the sustainability of <a href="https://cointelegraph.com/news/strategy-in-2026-can-its-bitcoin-first-model-hold-up" rel="noopener noreferrer nofollow">buy-and-hold strategies.</a>
The move shows GameStop sought to earn income on its Bitcoin by placing short-dated call options with strike prices between $105,000 and $110,000 that are set to expire Friday.&nbsp;
The disclosure shows a $2.3 million unrealized gain and a $700,000 liability tied to the options, while some covered-call contracts expired unexercised in January.
GameStop’s covered call strategy enables it to sell call options that give buyers the right to purchase its Bitcoin at a fixed price. GameStop earns premiums and retains the Bitcoin if the options aren’t exercised.
<h2 id="gamestop-directly-holds-just-one-bitcoin-now">GameStop directly holds just one Bitcoin now</h2>
Since GameStop moved 4,709 Bitcoin to Coinbase, a counterparty that can rehypothecate or reuse the pledged Bitcoin, GameStop is no longer counting those assets as directly held.&nbsp;
Putting Bitcoin up as collateral “resulted in the derecognition of the pledged digital assets and the corresponding recognition of a digital asset receivable,” GameStop said in the filing.
“Although the classification of these assets has changed, our economic exposure is consistent with direct ownership of the underlying Bitcoin,” it added.
GameStop still holds one Bitcoin that wasn’t put up for collateral.
GameStop added that its pledged Bitcoin was worth $368.3 million by Jan. 31 and that it recorded an unrealized loss of $59.7 million on that date because of Bitcoin’s price drop.
Related: <a href="https://cointelegraph.com/markets/bitcoin-in-later-stages-of-bear-market-watch-these-btc-price-levels" rel="noopener noreferrer nofollow">Bitcoin in ‘later stages’ of bear market: Watch these BTC price levels</a>
GameStop launched a Bitcoin treasury after its CEO, Ryan Cohen, met with Strategy chair <a href="https://cointelegraph.com/news/saylor-hints-strategy-bitcoin-buy" rel="noopener noreferrer nofollow">Michael Saylor</a> in February 2025 to discuss how <a href="https://cointelegraph.com/markets/strategy-halts-bitcoin-buying-via-strc-will-btc-price-dip-again" rel="noopener noreferrer nofollow">Bitcoin strategies</a> can be implemented.
Prior to moving the 4,709 Bitcoin to Coinbase, GameStop’s Bitcoin stash <a href="https://bitcointreasuries.net/" rel="noopener noreferrer nofollow">ranked</a> in the top 25 Bitcoin treasuries by holding size.
Magazine: <a href="https://cointelegraph-magazine.com/bitcoin-may-face-hard-fork-over-any-attempt-to-freeze-satoshis-coins/" rel="noopener noreferrer nofollow">Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins</a>

GameStop did not sell its 4,709 Bitcoin after all, filing shows

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Cointelegraph

Other articles published on Mar 27, 2026

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