GameStop Uses Bitcoin Stash for Options Income

GameStop has strategically leveraged its substantial Bitcoin holdings, transferring nearly all of its 4,709 BTC to Coinbase Prime. Instead of selling, the company is employing a covered-call options strategy, pledging the cryptocurrency as collateral. This move aims to generate premium income by selling short-dated call options with strike prices between $105,000 and $110,000. While this strategy caps potential upside gains on Bitcoin, it allows GameStop to maintain economic exposure while earning revenue. The company now records these assets as a receivable rather than directly held, reflecting a shift in its treasury management approach.