- GameStop has pledged its entire 4,709 BTC treasury, worth roughly $300 million, to Coinbase Credit as collateral for an options strategy.
- The company no longer controls the private keys, granting Coinbase the legal right to “rehypothecate, commingle, or unilaterally sell the pledged BTC.”
- The initial $500 million BTC purchase is now significantly underwater, with Bitcoin trading far below its $106,000 average acquisition cost.
- GameStop’s covered call strategy, renewed after a May 29 expiration, carries a strike price as low as $80,000, increasing the risk of the asset being called away.
GameStop CEO Ryan Cohen has transferred control of the company’s entire 4,709 bitcoin holdings to Coinbase Credit. Consequently, Coinbase now possesses the rights to reuse or sell the $300 million in collateral.
This drastic move stems from a covered-call options strategy initiated in late 2025. The video game retailer, which famously bought 4,710 BTC for $500 million, sought premium income from its depreciating treasury asset. However, the strict bearer-asset nature of bitcoin means “control of the pledged BTC transferred to the counterparty.”
Accounting rules therefore forced GameStop to replace the bitcoin on its books with a digital assets “receivable.” The company insists its economic exposure remains consistent with direct ownership. Meanwhile, the strategy’s risk profile has intensified.
When first disclosed, the call options had strike prices between $105,000 and $110,000. By May 29, the strike for the same coins had fallen to a riskier $80,000. GameStop got lucky as BTC stayed below that level, allowing the options to expire worthless.
The company has since renewed its covered call arrangement with Coinbase. Its bitcoin therefore remains subject to the same rehypothecation and liquidation terms today.
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