GameStop has clarified what happened to the Bitcoin it transferred earlier this year. The company did not sell its 4,709 BTC position. Instead, it pledged the Bitcoin to Coinbase as collateral for an over-the-counter covered-call strategy designed to generate option premium income.
According to an annual 10-K report filed with the SEC, the 4,709 BTC was worth about $368 million on January 31, 2026. GameStop retained one Bitcoin in direct custody while recording the pledged holdings as a digital-assets receivable because Coinbase had the right to rehypothecate, re-pledge or sell the collateral.
GameStop turns Bitcoin exposure into income
The strategy signals a move from simply holding Bitcoin toward actively managing the treasury asset. GameStop sells call options against its Bitcoin exposure and receives premiums from the contracts.
The trade creates a clear compromise. If Bitcoin stays below the option’s strike price, GameStop keeps the premium while retaining its economic exposure. If Bitcoin rises sharply above the strike, however, the calls limit the upside available from the pledged Bitcoin.
That makes the strategy different from simply selling Bitcoin. GameStop remains economically exposed to the asset while attempting to generate additional income from its volatility.
The strategy has since changed
GameStop’s latest filing shows that the covered-call program remains active, although the contracts have changed. As of August 1, 2026, outstanding calls referenced approximately 2,000 BTC with a $70,000 strike price and maturities extending through September 25. The company reported about $13.8 million in gains from changes in the fair value of covered-call contracts during the first half of fiscal 2026.
The move reflects a wider expansion of institutional crypto derivatives infrastructure. The integration of FalconX OTC options into platforms such as Talos recently showed how institutions are gaining more ways to manage digital-asset exposure.
Other companies are taking different approaches to Bitcoin treasury management. H100 Group has recently pursued acquisitions that could increase its Bitcoin holdings to about 3,500 BTC. GameStop, by contrast, is using derivatives to generate income from an existing position while retaining substantial exposure to Bitcoin.
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