GameStop Renews Coinbase Bitcoin Options Deal That Caps Upside for Modest Income

GameStop renewed a covered-call options deal with Coinbase that keeps nearly all its Bitcoin tied up as collateral, generating only $5.8M in premium income during a quarter where it posted $390M+ in profit.

• GameStop rolled its Coinbase covered-call contracts forward in late May with a lower $80,000 strike price, down from $105,000-$110,000.
• The 4,710 BTC are now pledged as collateral and sit as a $369.6M claim — about $58M below their cost basis.
• The strategy generated just $5.8M in premium income in a quarter where GameStop posted record profit of over $390M.
• Analysts note the deal adds counterparty risk and caps upside if Bitcoin rallies, in exchange for steady premium income.

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