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What Happened
GameStop rolled over covered call contracts tied to nearly all of its Bitcoin holdings after the previous batch expired on May 29, based on its latest quarterly filing.
The arrangement allows Coinbase to potentially acquire the Bitcoin at a predetermined price if the cryptocurrency rises above the strike price before expiration.
In exchange, GameStop collects an upfront premium.
The new contracts carry an $80,000 strike price, down from the prior range of $105,000 to $110,000.
Because the Bitcoin is pledged under the arrangement, accounting rules require GameStop to remove the cryptocurrency from its balance sheet and instead record a receivable representing its right to get…
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