GameStop has clarified that it did not sell its 4,709 Bitcoin, despite earlier market speculation.
Instead, the company used those holdings in a financial strategy with Coinbase’s lending arm, Coinbase Credit.
What actually happened
GameStop pledged its Bitcoin as collateral rather than selling it. This means the company still has economic exposure to Bitcoin’s price—it benefits if prices go up and loses if they fall.
At the same time, it entered a covered-call strategy, which is a way to generate income from assets you already own.
How the strategy works
Here’s the simple version:
- GameStop sold call options on part of its Bitcoin
- In return, it collected premium income
- But there’s a trade-off: if Bitcoin rises above certain levels, its upside is limited
In this case, the strike prices were between $105,000 and $110,000. So if Bitcoin goes above that range, GameStop won’t fully benefit from the increase—but it still keeps the premium it earned.
Why the accounting changed
Because Coinbase Credit had control rights over the pledged Bitcoin (including the ability to reuse or sell it), GameStop had to change how it reports the assets.
- The Bitcoin was removed from its balance sheet as a direct holding
- It was replaced with “digital asset receivables” worth about $368.3 million
Even with that change, the company says its overall exposure to Bitcoin hasn’t changed.
The bottom line
GameStop didn’t exit Bitcoin—it got more strategic with it.
By using a covered-call approach, the company is trying to:
- Earn extra income
- Keep exposure to Bitcoin
- Manage risk in a volatile market
It’s a more complex move than just buying and holding—but it shows how companies are starting to treat crypto like a full financial asset, not just a speculative bet.
