Key Information

• The CEO of Strive Asset Management sent a letter to GameStop’s Chairman and CEO, Ryan Cohen, encouraging the conversion of cash reserves into Bitcoin.
• GameStop possesses nearly $5 billion in cash.
• Cole argues that Bitcoin represents the new standard for capital deployment.

Detailed Context

Matt Cole, the CEO of Strive Asset Management, has urged GameStop to consider Bitcoin as a reserve asset. In a letter sent to Ryan Cohen on February 24, he asserted that this approach could help GameStop redefine itself as a leader in the market using its substantial cash reserves.

“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector.”

According to the communication, Strive holds GME shares through its exchange-traded funds, which gives it a fiduciary duty and vested interest in GameStop’s performance. Cole mentioned that the firm holds GME stock in three different ETFs without revealing specific quantities.

Strive’s report to GameStop Image Source: Strive/CoinDesk

The suggestion comes as reports indicated GameStop is contemplating investments beyond traditional avenues, including Bitcoin and other cryptocurrencies. Cole emphasizes that Bitcoin not only serves as an inflation hedge but positions GameStop for future strategic advancements by rejecting non-profitable operations and social programs.

“We applaud the leadership your firm has already taken to close many unprofitable stores and publicly reject DEI.”

This move suggests a trend where companies integrate Bitcoin into their financial strategies, a practice observed by other firms like MicroStrategy and Semler Scientific.