GameStop's Bitcoin Covered Calls Face Expiration as BTC Trades Above $70,000 Strike
GameStop's Bitcoin options position faces a Friday test
GameStop's covered-call contracts tied to roughly 2,000 Bitcoin are approaching expiration, with Bitcoin trading well above the $70,000 strike price disclosed in a September filing. The company has not confirmed whether those positions are still open.
In a Sept. 9 filing, GameStop disclosed that covered-call contracts tied to approximately 2,000 BTC were outstanding as of Aug. 1, with maturities extending through Sept. 25. Bitcoin was trading around $85,662 on Sept. 22, more than $15,000 above the strike price.
Key numbers
- About 2,000 BTC tied to covered calls with a $70,000 strike
- Roughly $31.3 million in potential upside capped at current prices
- $2 million derivative liability recorded for covered calls as of Aug. 1
- About $13.8 million in gains from fair-value changes during the first half of fiscal 2026
- 2,000 BTC is separate from 4,709 BTC pledged to Coinbase Credit
What is confirmed
GameStop disclosed covered-call contracts tied to roughly 2,000 BTC in a Sept. 9 filing. Those contracts had a $70,000 strike price and maturities extending through Sept. 25. As of Sept. 22, Bitcoin was trading around $85,662, putting the token more than $15,000 above the strike.
The company recorded a $2 million derivative liability for covered calls as of Aug. 1 and reported about $13.8 million in gains from changes in their fair value during the first half of fiscal 2026. GameStop has also acknowledged that its covered-call program limits participation in Bitcoin gains above the relevant strikes.
What is still unclear
GameStop has not disclosed whether the same covered-call exposure remains in place today. The Sept. 8 earnings release provided no update beyond the Aug. 1 snapshot. Public filings also leave several details unresolved, including whether the contracts settle in cash or Bitcoin, whether they can be exercised before maturity, and how automatic exercise and closeout provisions are structured.
Previous filings show GameStop has actively adjusted its strategy, with an earlier tranche expiring before new contracts were entered. This means the outstanding amount can shift between reporting dates.
Why this matters
Covered calls allow an asset holder to generate premium income by selling another investor the right to participate in gains above a specified price. When the underlying asset rallies sharply through the strike, appreciation above that level is effectively surrendered while the contract remains outstanding.
At current prices, the difference between the $70,000 strike and Bitcoin's spot price amounts to roughly $31.3 million across 2,000 BTC. That figure represents potential upside surrendered under the strategy, not a realized loss. GameStop collected option premiums for selling the calls, and the final economics depend on the contract terms and whether the positions were closed or rolled.
What happens next
The key question is whether GameStop still holds the $70,000 calls after Friday's expiration. If the calls remain open, the company may have traded tens of millions of dollars in upside for option income. If the position was rolled or closed, the outcome could look very different. The next filing would be the clearest indication of how aggressively GameStop is managing its Bitcoin treasury as prices move higher.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.