GameStop's $31M Bitcoin Options Bet Goes Up in Smoke

GameStop's Bitcoin options strategy is facing a critical test as the cryptocurrency surpasses its disclosed $70,000 call strike. The company has revealed that it had covered-call contracts tied to approximately 2,000 BTC outstanding as of August 1, with maturities extending through September 25.

The current price of Bitcoin is well above the strike, leaving a difference of around $31.3 million across 2,000 BTC. This figure represents potential upside surrendered under the strategy rather than a realized loss.

GameStop collected option premiums for selling the calls and would have capped its participation in further gains on the covered Bitcoin if those calls remain open through expiration. However, it is unclear whether GameStop still has the $70,000 calls in place after Bitcoin's rally.