GameStop Pledges 4,709 Bitcoin to Coinbase for Covered-Call Strategy

The company said nearly all of its Bitcoin holdings were posted as collateral on Coinbase while retaining ownership of the assets rather than selling them.

Summary

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Terms & Concepts
  • Covered-call strategy: An options strategy in which an asset holder uses existing holdings as the basis for selling call options to generate income.
  • Collateral: Assets pledged to secure a financial position or obligation, helping reduce counterparty risk in trading or lending arrangements.
  • Bitcoin: The largest cryptocurrency by market value, often used as a reserve asset or trading instrument in digital asset markets.