GameStop moves almost all bitcoin to Coinbase for collateral
March 25, 2026
GameStop recently made headlines after transferring all but one bitcoin to Coinbase as collateral, marking a significant shift in its approach to the cryptocurrency. In the past year, GameStop had strategically accumulated bitcoin as a treasury reserve asset. However, the company has now changed course, following a trend of companies moving away from the practice of HODLing bitcoin.
At one point, GameStop ranked as the 21st-largest bitcoin treasury company, but it has since fallen to the 190th spot. The retailer pledged all but one of its 4,710 bitcoins as collateral for a covered-call strategy with Coinbase Credit, according to data from Bitcoin Treasuries. The decision to move the majority of its bitcoins to Coinbase Prime earlier this year fueled speculation that GameStop might be planning to sell off the asset.
The terms of the agreement with Coinbase Credit give the platform certain rights, including the ability to rehypothecate, commingle, or unilaterally sell the pledged bitcoin. This arrangement led GameStop to derecognize the pledged bitcoin as an intangible asset. However, the company also recorded digital assets receivable worth $368.3 million, representing a contractual right to receive an equivalent amount of bitcoin in the future.
To mitigate the volatility of bitcoin’s price and generate additional yield, GameStop sold covered-call option contracts with strike prices ranging from $105,000 to $110,000 and maturities extending through March 2026. Following this strategy shift, GameStop joined a growing list of bitcoin firms that have opted to sell part of their bitcoin reserves. Empery Digital, for example, sold $4.2 million worth of bitcoin to fund share repurchases, while GD Culture Group and Cango also sold portions of their bitcoin reserves for similar purposes.
Despite the move to pledge a significant portion of its bitcoin as collateral, GameStop has not ruled out the possibility of revisiting its bitcoin strategy. The company stated its intention to use the net proceeds from convertible 2030 notes for general corporate purposes, which could include the acquisition of bitcoin. As a result, GameStop’s shares experienced a 2.7% increase following the announcement.
In conclusion, GameStop’s decision to transfer most of its bitcoin to Coinbase as collateral reflects a broader trend among companies reevaluating their approach to holding cryptocurrency assets. This strategic shift highlights the evolving nature of the cryptocurrency market and the various approaches companies are taking to manage their exposure to bitcoin’s price volatility.