GameStop converts $368 million in Bitcoin into options yield strategy

GameStop disclosed that the approximately 4,710 BTC units it previously transferred to Coinbase Prime were not sold, but were used as collateral to participate in a covered call strategy to obtain option premium income. The company sells short-term call options through over-the-counter (OTC) transactions with exercise prices ranging from $105,000 to $110,000, earning income while retaining Bitcoin exposure, but correspondingly limits the upside. Affected by this structure, GameStop no longer directly holds Bitcoin assets, but records them as "assets receivable", that is, the right to recover the equivalent amount of BTC from counterparties in the future. Because the collateralized assets can be re-pledged or reused, their positions have been transformed into derivatives exposure with counterparty risk. The financial report showed that as of the end of the fiscal year, the value of assets receivable related to the strategy was approximately US$368.3 million, while an unrealized loss of approximately US$59.7 million was recorded (due to the decline in Bitcoin prices). In addition, the company recognized approximately US$700,000 in option liabilities and US$2.3 million in unrealized gains.