GameStop (GME) news: Bitcoin (BTC) covered call strategy used to generate income
CoinDesk
GameStop used nearly all its Bitcoin in a covered call options strategy via Coinbase to generate income.Summary
GameStop revealed in its annual report that it transferred almost all of its 4,710 Bitcoin to Coinbase Prime, not to sell, but to implement an over-the-counter covered-call strategy. This strategy involved writing short-dated call options on its BTC with strike prices between $105,000 and $110,000 to earn income from option premiums. Due to this arrangement, where Coinbase can redeploy the pledged bitcoin, GameStop no longer directly holds the assets but records a receivable of $368.3 million, meaning the position is now encumbered and tied to derivatives, shifting from its previous buy-and-hold approach.
(Source：CoinDesk)