GameStop implemented a covered call options strategy to generate income from its Bitcoin holdings, using 4,710 BTC as collateral through Coinbase Prime. The company executed short-term OTC options with strike prices between $105,000 and $110,000, maintaining downside exposure while capping upside potential. BTC is now classified as a receivable asset, valued at $368.3 million year-end, reflecting a $59.7 million unrealized loss. The strategy incurred options trading liabilities of $700,000 and generated $2.3 million in unrealized gains.

Odaily Planet Daily reports that GameStop disclosed that the approximately 4,710 BTC previously transferred to Coinbase Prime were not sold, but rather pledged as collateral to participate in a covered call strategy to generate option premium income.

The company sells short-term call options over-the-counter (OTC) with strike prices ranging from $105,000 to $110,000 to generate income while maintaining Bitcoin exposure, though this limits potential upside gains.

Due to this structure, GameStop no longer directly holds Bitcoin assets but instead classifies them as "receivables," representing the right to recover an equivalent amount of BTC from the counterparty in the future. Since the collateral assets may be rehypothecated or reused, its position has been transformed into a derivatives exposure with counterparty risk.

The financial report shows that, as of the end of the fiscal year, the value of receivable assets related to this strategy was approximately $368.3 million, with an unrealized loss of approximately $59.7 million (due to a decline in Bitcoin’s price). Additionally, the company recognized an option liability of approximately $700,000 and an unrealized gain of $2.3 million.