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GameStop Didn't Make Money With Its Bitcoin Bet—But It Will Try Again This Quarter

GameStop renewed its Bitcoin covered-call strategy with Coinbase after the prior contracts expired worthless. The new options use an $80,000 strike, down from the previous $105,000-$110,000 range, and are designed to generate upfront premium income rather than maximize upside from Bitcoin price appreciation. As a result of the arrangement, GameStop must remove the pledged Bitcoin from its balance sheet and record a receivable valued at about $369.6 million, roughly $58 million below cost basis. The article suggests Bitcoin’s direct contribution to earnings was limited, adding only about $1 million in quarterly gains, while the company’s record net income was driven mostly by interest income and other investments. Market impact is modest for BTC itself, but the story highlights how a corporate treasury holder is monetizing Bitcoin exposure in a more income-oriented, lower-upside manner.

Category

Bitcoin

Sentiment

Neutral

Event

Corporate action

Reading time

1 min