GameStop Deploys Covered-Call Strategy on Bitcoin Holdings

GameStop spent about $500 million to acquire 4,710 Bitcoin in May 2025, converting corporate cash into crypto assets. A covered-call strategy involves holding the asset while selling call options to collect premiums, boosting short-term income but capping gains if the price rises above the strike price.

In an annual report filed with the U.S. SEC on March 24, 2026, GameStop disclosed that it had pledged 4,709 Bitcoin to Coinbase Credit rather than selling them. The receivable had a fair value of $368.3 million as of January 31, 2026, with an unrealized loss of $59.7 million. The over-the-counter call options had strike prices ranging from $105,000 to $110,000 and were due to expire no later than March 27.