File Disclosure: GameStop ultimately did not sell the 4,710 Bitcoins it held

Goldman Sachs reports that on March 27, GameStop disclosed that in January of this year, it collateralized nearly all of its Bitcoin holdings stored on Coinbase for a covered call strategy, ending two months of speculation about whether it had sold these Bitcoins.
In its 10-K annual report filed with the U.S. SEC, the game retailer stated that it had pledged 4,709 Bitcoins (almost all of its holdings) as collateral under an agreement with Coinbase Credit and used this position to sell call options. The document clarified the market speculation from January—when on-chain analysts observed GameStop transferring all its Bitcoin to Coinbase Prime, leading to speculation that it might be preparing to liquidate.
As Bitcoin has fallen 45% from its all-time high, the Bitcoin reserve model has come under pressure in recent months, with some analysts questioning the sustainability of a “buy and hold” strategy last year. This move indicates that GameStop is attempting to generate income by selling short-term call options, with strike prices between $105,000 and $110,000, set to expire this Friday.
Disclosure data shows the company has an unrealized gain of $2.3 million and a $700,000 liability related to these options, with some covered call contracts expiring in January without being exercised. The covered call strategy allows GameStop to sell call options, giving buyers the right to purchase its Bitcoin at a fixed price; if the options are not exercised, the company retains the option premiums and continues to hold the Bitcoin.