GameStop Loses Out on $31M in Potential Bitcoin Gains

GameStop's strategy for generating income from its Bitcoin holdings has come under scrutiny as the cryptocurrency trades above its disclosed $70,000 call strike. The company sold covered-call contracts tied to approximately 2,000 BTC, which were outstanding as of August 1, with maturities extending through September 25. If those calls remain open through expiration, GameStop would have capped its participation in further gains on the covered Bitcoin.

Bitcoin's recent rally has made the company's strategy less attractive, as appreciation above the strike price is effectively surrendered while the contract remains outstanding. The difference between spot and the $70,000 strike amounts to roughly $31.3 million across 2,000 BTC, representing potential upside surrendered under the strategy.

GameStop collected option premiums for selling the calls, but the final economics depend on the contract terms, any premium received, and whether the company has since closed or rolled the positions.