GameStop Pledged 4,709 Bitcoin to Coinbase for ₱22.17 billion ($368 million)
GameStop kept just one Bitcoin unpledged after striking a deal with Coinbase that caps upside at ₱6,326,330 ($105,000) per coin. The video game retailer originally bought 4,710 Bitcoin for around ₱30.13 billion ($500 million) in May 2025, but a 40% drop from October's record high left it sitting on steep unrealized losses.
Key Takeaway
GameStop traded Bitcoin upside for immediate cash—a hedge against further losses, not a bet on growth.
GameStop pledged 4,709 of its 4,710 Bitcoin to Coinbase in exchange for ₱22.17 billion ($368 million) cash upfront, according to its annual report filed on March 24.
The deal caps Bitcoin upside at $105,000 per coin, a conservative ceiling given the asset's history of wild swings. Coinbase got full rehypothecation rights, meaning it can lend, sell, or commingle GameStop's Bitcoin however it wants. That forced GameStop to reclassify the Bitcoin from owned assets to "digital assets receivable" on its balance sheet—essentially an IOU from Coinbase.
Bitcoin's 40% drop from October's record high left GameStop sitting on steep unrealized losses by year-end. The Coinbase deal gave the struggling retailer immediate liquidity while limiting exposure to further downside.
GameStop's approach stands in stark contrast to Strategy, the former MicroStrategy, which has embraced Bitcoin's volatility to capture full upside. The trade-off shows in the rankings: GameStop dropped from 21st to 190th among public company Bitcoin holders, according to BitcoinTreasuries.net.
The cash injection comes as GameStop's core business continues to bleed. Revenue dropped 25% year-over-year, with fourth-quarter sales down 14%. Bitcoin traded at $68,900 at the time of the March 24 filing.
This article was written based on reporting from Dlnews.
