CryptoSlate
GameStop's Bitcoin covered-call program is facing an expensive test. A Sept. 9 filing disclosed covered-call contracts tied to roughly 2,000 BTC, open as of Aug. 1 with a $70,000 call strike and maturities through Sept. 25. With Bitcoin trading around $85,662 on Sept. 22, more than $15,000 above the strike, the gap between spot and strike works out to roughly $31.3 million in potential upside the company has capped if the calls remain open through expiration. That figure is surrendered participation in further gains, not a realized loss: GameStop collected option premiums for selling the calls, and final economics depend on contract terms, premium received, and whether the positions have since been closed or rolled.
Why it matters
Covered calls let an asset holder earn premium income by selling another investor the right to capture gains above a set price. The trade stops working when the underlying rallies hard through the strike, because appreciation above that level is effectively given away while the contract is outstanding. GameStop has already acknowledged the program limits its participation in Bitcoin gains above the relevant strikes. The rally into the mid-$80,000s has made that trade-off visible in tens of millions of dollars.
Public filings leave key details unresolved: the private over-the-counter contracts may settle in cash or Bitcoin, may or may not be exercisable early, and GameStop recorded a $2 million derivative liability for the covered calls as of Aug. 1 alongside about $13.8 million in fair-value gains in the first half of fiscal 2026, figures that include already-matured contracts. Earlier tranches expired before new contracts were entered, so the outstanding amount can shift between reporting dates.
Market impact
The 2,000 BTC referenced by the calls sits separate from the 4,709 BTC GameStop pledged to Coinbase Credit under a collateral arrangement that allows the lender to rehypothecate, commingle, or sell the pledged Bitcoin. Friday's expiration narrows the investor question to one line: does GameStop still hold the $70,000 calls after the rally? If yes, the company traded tens of millions in upside for option income.
Frequently asked questions
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How much Bitcoin upside has GameStop potentially given up?
With Bitcoin trading around $85,662 against a $70,000 call strike, the gap amounts to roughly $31.3 million across the 2,000 BTC covered by the contracts, if the calls remain open through expiration.
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Is the $31 million a realized loss for GameStop?
No. It represents potential upside surrendered under the covered-call strategy rather than a realized loss. GameStop collected option premiums for selling the calls, and final economics depend on contract terms and whether the positions were closed or rolled.
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What are covered calls and why do they hurt in a rally?
Covered calls let a holder earn premium income by selling another investor the right to gains above a set price. When the asset rallies sharply through the strike, appreciation above that level is effectively surrendered while the contract stays outstanding.
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Does the covered-call position cover all of GameStop's Bitcoin?
No. The roughly 2,000 BTC referenced by the calls is separate from the 4,709 BTC GameStop pledged to Coinbase Credit under a collateral arrangement that allows the lender to rehypothecate, commingle, or sell the pledged coins.
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What details about the options remain undisclosed?
GameStop has not said whether the private over-the-counter contracts settle in cash or Bitcoin, whether they can be exercised early, or whether the $70,000 calls are still in place after the Aug. 1 filing snapshot.
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