GameStop did not sell its 4,710 Bitcoin. The video game retailer instead pledged nearly all of its BTC holdings to Coinbase Credit as collateral for a covered call options strategy, according to a recent SEC filing that put to rest weeks of speculation about a massive liquidation.
The confusion stemmed from a January 2026 transfer of BTC to Coinbase Prime that triggered widespread “GameStop is dumping” speculation across crypto social media. In reality, GameStop pledged 4,709 of its 4,710 coins to Coinbase Credit, retaining just a single Bitcoin directly on its balance sheet.
The SEC filing explains that the pledge “resulted in the derecognition of the pledged digital assets and the corresponding recognition of a digital asset receivable,” as reported by CoinTelegraph. That receivable was valued at $368.3 million as of January 31, 2026.
How GameStop Built a 4,710 BTC Treasury
GameStop formally authorized Bitcoin as a treasury reserve asset in early 2025, following CEO Ryan Cohen’s meeting with MicroStrategy’s Michael Saylor in February of that year to discuss corporate Bitcoin strategies. The company went on to acquire 4,710 BTC, placing it among the top 25 corporate Bitcoin treasuries globally before the pledge.
The covered call strategy involved writing short-dated call options with strike prices between $105,000 and $110,000 against the pledged Bitcoin. Some of those contracts expired unexercised in January 2026, with the remaining maturities extending through March 27, 2026.
At today’s Bitcoin price of roughly $70,081, GameStop’s 4,710 BTC is worth approximately $330 million, well below the $368.3 million receivable value recorded in January. The position has been underwater for much of fiscal 2025, with the company recording a total $131.6 million loss on digital assets: $71.8 million in realized losses on the derecognition, $59.7 million in unrealized losses on the receivable, and $0.1 million in remeasurement losses on the single retained coin.
By comparison, MicroStrategy (now Strategy) holds its Bitcoin outright without pledging for options income, absorbing full mark-to-market volatility. GameStop’s approach, sacrificing upside above $105,000 in exchange for premium income, is a strategy no other major corporate holder, including Tesla or Block, has publicly adopted.
The Bull Case: Why Holding Could Pay Off
GameStop’s decision to hold rather than sell during a period of extreme market stress signals conviction. The broader regulatory environment has shifted in crypto’s favor, with the SEC pulling back from aggressive enforcement, potentially making corporate Bitcoin holdings less legally risky going forward.
Bitcoin’s long-term track record favors patient holders. Despite being down roughly 45% from its all-time highs, BTC has historically recovered from similar drawdowns within 12 to 18 months in prior cycles. If Bitcoin were to revisit the $105,000 to $110,000 range where GameStop set its call strikes, the treasury would be worth north of $490 million.
The covered call structure itself is a pragmatic middle ground. GameStop collects premium income while maintaining exposure to Bitcoin’s upside up to the strike price. The $2.3 million in unrealized gains on options positions reported in the filing suggests the strategy has generated at least some income, though exact premium totals have not been disclosed.
Cohen’s consultation with Saylor before building the position also suggests this was a deliberate treasury strategy, not a meme-driven impulse. The growing list of public companies adopting Bitcoin treasuries, with Twenty One Capital recently surpassing MARA in holdings, reinforces the institutional trend GameStop is riding.
The Bear Case: Why Critics See Risk
GameStop’s core retail business continues to face structural headwinds. Revenue has declined as physical game sales shrink and digital distribution dominates. Allocating hundreds of millions to a volatile asset while the underlying business contracts has drawn criticism from analysts who question whether Bitcoin serves shareholder interests or distracts from operational challenges.
The $131.6 million total loss on digital assets in fiscal 2025 is not trivial. Bitcoin’s historical drawdowns of 70% to 80% from peak to trough in prior cycles mean the position could deteriorate further if this downturn deepens. The Fear and Greed Index currently sits at 10, deep in “Extreme Fear” territory, with Bitcoin testing $70,000 support for a third consecutive session.
Tesla’s 2022 Bitcoin sale offers a cautionary precedent. After purchasing $1.5 billion in BTC, Tesla sold roughly 75% of its holdings at a loss, citing liquidity concerns. If GameStop’s core business cash flows tighten further, the pressure to liquidate could mount regardless of long-term conviction.
The covered call strategy also caps GameStop’s upside. If Bitcoin stages a sharp recovery above $110,000, the company would not benefit beyond that threshold on the pledged coins. In a strong bull market, this trade-off could look costly, effectively locking in gains at a level below the prior highs.
With the final batch of options contracts expiring today, March 27, 2026, GameStop faces an immediate decision: renew the covered call program, let the pledge unwind, or pivot to a different strategy entirely. Whether Cohen’s team extends the arrangement or brings the 4,709 BTC back onto the balance sheet will signal how GameStop views both Bitcoin’s near-term trajectory and the evolving landscape of institutional crypto strategies.
The $131.6 million loss is real. The conviction to hold through it is also real. What happens next depends on whether Bitcoin’s price recovers before GameStop’s patience, or its shareholders’ patience, runs out.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
