GameStop Bitcoin strategy shifts to covered calls, pledging 4,709 BTC on Coinbase Credit to earn premium income while retaining exposure.
Author: Kritika Gupta
High attention and emotional sentiment detected.
27th March 2026- The GameStop Bitcoin strategy has taken a sharp turn toward active yield generation rather than passive holding. In its fiscal Q4 2026 10-K filing, GameStop confirmed, that it did not sell its Bitcoin holdings. Instead, the company pledged 4,709 out of 4,710 BTC, worth about $368.3 million as of January 31, 2026, as collateral with Coinbase Credit to run a covered-call options strategy.
This means GameStop is actively using its Bitcoin to generate income rather than holding it passively. Specifically, the company sold short-dated call options with strike prices between $105,000 and $110,000. As a result, it collects upfront premium income while still maintaining exposure to Bitcoin’s price. However, this also caps its upside if Bitcoin rallies above those strike levels.
Importantly, only one Bitcoin remains directly on GameStop’s balance sheet. Therefore, the earlier on-chain transfers to Coinbase Prime, which had triggered fears of a sell-off, were not liquidation signals but operational steps to enable this strategy.
High Signal Summary For A Quick Glance
3.0 TV (3verseTV)
@reallive3tv
GameStop is turning Bitcoin into a cash-flow machine 💰 Instead of just holding $BTC, the company is using options strategies on its $368M stash to generate income 👀📈 This isn’t “HODL” anymore… This is Wall Street-level crypto strategy Corporate crypto just levelled up 🚀 https://t.co/K9zEouMuoK
07:40 AM·Mar 27, 2026
Crypto Town Hall
@Crypto_TownHall
GAMESTOP DID NOT SELL ITS $368M BITCOIN, FILES SHOW GameStop confirmed it did not sell its $368 million in Bitcoin, clarifying the movement of funds in its latest filing. Instead, the Bitcoin was transferred to Coinbase as collateral for a covered-call options strategy, https://t.co/X3JUJAoWS8
05:30 AM·Mar 27, 2026
CoinDesk
@CoinDesk
LATEST: GameStop disclosed that nearly all of its 4,710 bitcoin were pledged to Coinbase as collateral for a covered-call options strategy, rather than being sold. https://t.co/Hd6uNta4If
09:50 PM·Mar 26, 2026
GameStop first entered Bitcoin in May 2025, purchasing 4,710 BTC for roughly $513 million. At that time, Bitcoin traded near all-time highs above $100,000. The company positioned this move as a treasury diversification strategy, similar to firms like MicroStrategy.
However, the market initially reacted negatively. GameStop’s stock dropped about 11 percent on the announcement day, as investors questioned the alignment between Bitcoin exposure and its core retail business.
Until recently, the GameStop Bitcoin strategy remained passive. The company held Bitcoin on its balance sheet without using derivatives or collateral structures. Then, in January 2026, the company transferred its holdings to Coinbase Prime. This triggered speculation across the market, with analysts suggesting a potential liquidation and estimating losses in the range of $75–85 million due to price declines.
At the same time, broader market volatility added pressure. Consequently, Bitcoin saw short-term weakness during mid-January. Despite this, GameStop’s stock remained relatively resilient and even gained around 6.7 percent, partly supported by separate corporate developments such as insider buying by chairman Ryan Cohen.
Under its agreement with Coinbase Credit, GameStop sold over-the-counter covered calls on 4,709 BTC with expirations extending through late March 2026.
In simple terms, a covered call works as follows:
Here, the strike prices range between $105,000 and $110,000, which sit well above the current Bitcoin price of around $68,000. Therefore, GameStop benefits from premium income while retaining upside potential up to those levels.
However, there are important trade-offs. If Bitcoin rises above the strike range, GameStop must effectively give up gains beyond that point. Additionally, Coinbase Credit has the right to rehypothecate or sell the pledged Bitcoin.
This move signals a clear shift from passive holding to active treasury management.First, GameStop is now treating Bitcoin as a yield-generating asset rather than a static store of value. By selling options, it offsets some downside and generates income in a volatile market environment.
Second, this strategy reflects a more conservative positioning. While the company still maintains exposure to Bitcoin, it sacrifices extreme upside in exchange for predictable premium income. This approach aligns with corporate risk management, especially given shareholder scrutiny and earnings pressure.
Third, this development introduces a new benchmark for corporate crypto treasuries. Traditionally, companies like MicroStrategy focused on long-term accumulation. In contrast, GameStop is layering derivatives on top of its holdings, which adds complexity but also opens new revenue streams.
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