GameStop Confirms It Never Sold Bitcoin, Uses Coins as Collateral

Ending two months of speculation, GameStop revealed in its annual report filed with the Securities and Exchange Commission that it never sold its Bitcoin. Instead, the company pledged 4,709 coins to Coinbase Credit as collateral for a covered-call options strategy.

January Onchain Analysis Misinterpreted GameStop’s Actions

In January, onchain trackers observed GameStop moving its entire Bitcoin stash to Coinbase Prime, leading to assumptions that the company was selling. However, it was later clarified that the transfer was part of a structured options play and not an exit strategy.

GameStop sold covered-call contracts with strike prices ranging from $105,000 to $110,000, set to expire soon. By selling these contracts, the company collects premiums upfront and retains the Bitcoin if the buyers choose not to exercise the options. Some contracts have already expired unexercised.

While one Bitcoin remains outside the collateral arrangement, the 4,709 pledged coins have been reclassified but still remain on the company’s books.

BTCUSD is currently trading at $67,312 on the 24-hour chart according to TradingView.

Reasons for the Change in Bitcoin Holding Classification

Due to Coinbase Credit’s ability to reuse pledged assets through rehypothecation, GameStop reclassified the 4,709 coins from direct holdings to a digital asset receivable. The company emphasized that despite the label change, its exposure to Bitcoin’s price movements remains unchanged.

Although the pledged coins were valued at $368 million as of January 31, an unrealized loss of over $59 million was recorded on that date, reflecting Bitcoin’s decline of approximately 45% from its peak. The filing also indicates a $2.3 million unrealized gain and a $700,000 liability related to the options position.

GameStop’s Entry into Bitcoin Following Meeting with Saylor

Reports suggest that GameStop CEO Ryan Cohen met with MicroStrategy chairman Michael Saylor in early 2025 to discuss corporate Bitcoin strategies. Shortly after the meeting, GameStop announced its foray into Bitcoin. Before the Coinbase transfer, the company was ranked among the top 25 corporate Bitcoin holders by size according to bitcointreasuries.net.

The SEC filing puts to rest the speculation of GameStop exiting Bitcoin. The company continues to hold its Bitcoin, though facing paper losses. It has opted to generate income from its position while waiting for market conditions to improve.

Featured image from Shutterstock, chart from TradingView

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