GameStop Pledges Nearly All Bitcoin Holdings to Coinbase, Caps Upside at $105K

GameStop made headlines when it it was buying Bitcoin. What received far less attention, however, was how the company structured its position soon after the purchase.

According to its latest annual , GameStop pledged 4,709 of its 4,710 Bitcoin, essentially its entire holding, to Coinbase as collateral for an options trading strategy. The company spent $500 million acquiring Bitcoin during fiscal year 2025, only to hand 99.9% of it to a third party the moment the ink was dry.

The arrangement is structured as a covered call strategy. GameStop receives a premium payment upfront in exchange for capping its potential gains if Bitcoin’s price rises above $105,000. In simple terms, the company earns income today but gives up the right to profit fully from any dramatic Bitcoin price surge beyond that threshold.

For a company that positioned its Bitcoin purchase as a bold treasury strategy in the mold of Strategy, the structure raises an obvious question: if you believe in Bitcoin’s long-term upside, why immediately cap that upside at $105,000?

The most notable detail in the filing is that GameStop has pledged nearly 4,709 , worth approximately $368 million at current prices, to Coinbase as collateral. Under the terms of the arrangement, the assets can be utilized within Coinbase’s broader financial framework, while GameStop retains formal ownership.

The filing indicates that the structure allows for the reuse of pledged collateral, effectively aligning with rehypothecation practices common in traditional finance. In such arrangements, a financial intermediary can deploy client collateral for its own purposes, introducing a layer of counterparty exposure.

While this approach is standard across institutional markets, it contrasts with the self-custody principles often emphasized in the crypto space, where minimizing reliance on third parties has long been a core narrative.

The company reported net income of $418.4 million for the full year, up sharply from $131.3 million the prior year. Adjusted net income came in at $647.4 million. GameStop reported a 25% decline in overall revenue, with fourth-quarter 2025 sales dropping by about 14%.

But the Bitcoin position, despite the headline numbers, recorded a $131.6 million loss on digital assets for the full year, reflecting the impact of Bitcoin’s price movement since the purchase.