GameStop just swapped $1.4B of zero-coupon convertible debt into equity—cutting total debt from $4.2B down to ~$2.8B. Clean balance sheet move.
But here's the spicy part:
Out of 4,710 $BTC they hold, 4,709 coins (basically everything) are pledged to Coinbase Credit under a Covered Call structure. Only 1 $BTC left in direct custody.
Coinbase Credit has contractual rights to rehypothecate or sell that collateral.
So GameStop's "Bitcoin treasury strategy" is really just leveraged paper exposure with almost zero actual coins in hand. If $BTC rips or Coinbase gets messy, this could get interesting fast.
But here's the spicy part:
Out of 4,710 $BTC they hold, 4,709 coins (basically everything) are pledged to Coinbase Credit under a Covered Call structure. Only 1 $BTC left in direct custody.
Coinbase Credit has contractual rights to rehypothecate or sell that collateral.
So GameStop's "Bitcoin treasury strategy" is really just leveraged paper exposure with almost zero actual coins in hand. If $BTC rips or Coinbase gets messy, this could get interesting fast.