GameStop's annual 10-K filing, submitted March 26, put to rest months of speculation: the company had not dumped its Bitcoin holdings. What it actually did was arguably more unusual.
Key Takeaways
GameStop pledged 4,709 of its 4,710 BTC as collateral to Coinbase Credit to run a covered call options strategy – it did not sell.
The company recorded a $131.6 million total loss on digital assets in fiscal 2025, combining realized and unrealized losses.
Net sales fell 14% in Q4 2025, though adjusted earnings beat analyst expectations; collectibles now make up a third of revenue.
GameStop holds $9 billion in cash and has signaled interest in a major acquisition.
The retailer disclosed that it pledged 4,709 of its 4,710 Bitcoin – essentially the entire position – as collateral with Coinbase Credit to execute a covered call options strategy. One coin remains on the direct balance sheet. The rest exists on GameStop’s books as a “digital assets receivable,” a distinction that carries real accounting and financial consequences.
The company acquired 4,710 BTC between May 14 and May 23, 2025, at an average price of roughly $107,900 per coin, for a total cost of approximately $504 million. The purchase was framed as a treasury diversification move, following the model MicroStrategy popularized – buy Bitcoin, hold it, and treat it as a macro hedge. That strategy has since shifted.
What the Numbers Show
By January 31, 2026, those holdings were valued at $368.3 million – down sharply from the acquisition cost. GameStop recorded a $131.6 million total loss tied to digital assets for fiscal 2025: $71.8 million in realized losses stemming from the accounting derecognition of the pledged coins, and $59.7 million in unrealized losses from Bitcoin’s price decline since purchase.
The covered call contracts were written with strike prices between $105,000 and $110,000, with maturities running through late March 2026. The structure generates premium income but caps upside if Bitcoin moves above those levels.
Under U.S. GAAP, because Coinbase Credit holds the right to rehypothecate – that is, reuse – the pledged collateral, GameStop is required to remove the Bitcoin from its balance sheet as a directly held asset. That accounting treatment, not an actual sale, is what caused the position to disappear from on-chain records and triggered the rumors in the first place.
In January 2026, blockchain analysts observed GameStop transfer its entire Bitcoin stash to Coinbase Prime across two tranches, on January 17 and January 20. The assumption in many corners of the market was a distressed or strategic exit. The 10-K clarified that interpretation.
Q4 Earnings: A Mixed Quarter
GameStop reported Q4 2025 results on March 24. Net income came in at $127.9 million, or $0.22 per share, fractionally below the $131.3 million reported in the same period a year earlier. On an adjusted basis – which strips out the digital asset losses – the company earned $291.4 million, or $0.49 per share, ahead of analyst expectations of $0.37.
Revenue told a different story. Net sales reached $1.104 billion for the quarter, a 14% decline from $1.283 billion in Q4 2024, and well short of the $1.47 billion consensus estimate. Hardware and accessories fell 26% to $535.6 million. Software dropped from $286.2 million to $203.7 million.
The one segment moving in the other direction: collectibles. Sales rose to $365.0 million, now accounting for 33.1% of total revenue, up from 21.1% a year ago.
SG&A expenses were cut by 14.5%. The company ended the quarter with $9.0 billion in cash, equivalents, and marketable securities – nearly double the $4.8 billion held a year earlier.
The Bigger Picture
GameStop’s ranking among corporate Bitcoin holders dropped from 21st to 190th globally, a direct result of the accounting derecognition. It is a notable slide for a company that entered the crypto space with significant fanfare less than a year ago.
Management has continued to point toward a major acquisition as the intended use of its cash reserves, with signals pointing toward consumer products or retail. No deal has been announced.
The covered call strategy represents a departure from the passive Bitcoin treasury model the board approved in March 2025. Whether it reflects a tactical income play or an early-stage exit from the crypto thesis altogether remains to be seen. The contracts mature by end of March 2026. What GameStop does next with those coins — or the cash they generate – will clarify the direction of a strategy that, so far, has cost the company more than $130 million on paper.
