GameStop disclosed in this week's annual SEC filing that it has provided 4,709 of its 4,710 Bitcoin (BTC) as collateral for an over-the-counter covered call strategy to Coinbase Credit, clarifying that this is not a spot sale.
This measure reclassified the Bitcoin holdings as accounts receivable of digital assets on the balance sheet amounting to $368.3 million.
The company recorded a net loss of $131.6 million in its cryptocurrency holdings for the fiscal year 2025.
This announcement resolved months of market speculation.
On-chain analysts pointed out that in January, nearly all BTC positions moved to Coinbase Prime, signaling a potential liquidation.
Covered call trading structure
Under the collateral agreement, GameStop sold short-term call options targeting 99.98% of its Bitcoin holdings, with strike prices set between $105,000 and $110,000, maturing by March 27, 2026.
As of Friday, Bitcoin is trading at around $67,000, making it likely that all options will expire worthless, in which case the company will retain the premiums received.
The 10-K report records $2.3 million in unrealized gains and $700,000 in liabilities related to open positions.
Because Coinbase holds the right to "rehypothecate, commingle, or unilaterally sell" the coins pledged as collateral, GameStop had to remove those assets from its financial statements in accordance with US GAAP.
Now the company has retained receivables representing a contractual right to reclaim an equivalent amount of Bitcoin in the future.
In its 10-K, the company stated that, despite this structure, its "economic exposure is consistent with directly holding the underlying Bitcoin."
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Balance sheet impact and CEO signals
This accounting treatment has dropped GameStop from 21st to 190th place in corporate Bitcoin holdings rankings based on Bitcoin Treasuries data.
$131.6 million in losses are divided into $71.8 million in realized losses recognized at the time of asset removal and $59.7 million in unrealized losses on receivables.
The company originally invested about $500 million to build its BTC position in May 2025, funded by a $1.5 billion convertible bond issuance completed the previous month.
CEO **Ryan Cohen** has not ruled out the possibility of a complete liquidation of Bitcoin. In a February CNBC interview, Cohen stated that the company's merger and acquisition (M&A) ambitions are "much more attractive than Bitcoin."
However, according to the 10-K, GameStop plans to use part of the funds from its 2030 maturity convertible bond issuance for additional Bitcoin purchases in the future.
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