GameStop Pledges 4,709 Bitcoin to Coinbase for Covered Call Strategy
According to GameStop’s annual 10-K filed with the SEC on June 26, nearly all of its 4,710 BTC were pledged to Coinbase as collateral in a January covered call strategy, not sold.
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Fact Check
The statement is directly supported by GameStop's Form 10-K filing with the SEC (Accession No. 0001326380-26-000013), which states that the company pledged 4,709 BTC to Coinbase Credit as collateral for a covered-call strategy. This strategy allows the company to generate income while maintaining exposure to Bitcoin's price, though it limits upside potential. The filing and subsequent reporting by CoinDesk and BitcoinTreasuries confirm the specific amount (4,709 BTC) and the remaining balance (1 BTC).
Summary
GameStop’s annual 10-K filed with the SEC on June 26 states that nearly all of its 4,710 Bitcoin holdings were pledged to Coinbase as collateral as part of a covered call strategy executed in January. The disclosure says 4,709 BTC were pledged, clarifying after about two months of market speculation that the company did not sell the Bitcoin. Earlier details in the filing reported $368.3 million in receivables tied to the pledged Bitcoin and a $59.7 million unrealized loss, while the company directly held 1 BTC outside the pledged amount.
Terms & Concepts
- covered call strategy: An options strategy in which an asset holder sells call options on assets it already owns, usually to earn premium income while capping upside above the strike price.
- Bitcoin: A decentralized digital asset and blockchain-based cryptocurrency that can be held directly or used as collateral in financial transactions.
- BTC: The market ticker commonly used to refer to Bitcoin in trading, accounting, and regulatory filings.