GameStop Converts $368 Million Bitcoin into Options Income Strategy

Odaily Planet Daily News: GameStop disclosed that the approximately 4,710 BTC previously transferred to Coinbase Prime was not sold but instead used as collateral to participate in a covered call strategy to generate options premium income. The company sold short-term call options via over-the-counter (OTC) transactions, with strike price ranges between $105,000 and $110,000, allowing it to retain Bitcoin exposure while generating revenue, though this also limits potential upside gains. Due to the structure, GameStop no longer directly holds Bitcoin assets but records them as "receivable assets," representing the right to reclaim equivalent BTC from counterparties in the future. Since collateral assets can be rehypothecated or reused, its position has shifted to a derivative exposure with counterparty risk. Financial reports show that as of the fiscal year-end, the receivable assets related to this strategy were valued at approximately $368.3 million, alongside an unrealized loss of about $59.7 million (due to Bitcoin price decline). Additionally, the company confirmed approximately $700,000 in options liabilities and $2.3 million in unrealized gains.