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Ruholamin Haqshanas
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Ruholamin Haqshanas
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GameStop Corp. (GME) has confirmed receipt of a letter from Strive Asset Management, urging the gaming retailer to use its substantial cash reserves to invest in Bitcoin.
The proposal has sparked significant discussion among financial circles, with some suggesting it could disrupt traditional finance perspectives.
GameStop CEO Ryan Cohen acknowledged the letter on February 26 through a post on X, confirming the correspondence from Strive CEO Matt Cole, dated February 24.
Strive CEO Urges GameStop to Invest $4.6B Cash Reserve in Bitcoin
Cole advised GameStop to deploy its $4.6 billion cash reserve into Bitcoin and consider using market offerings to fund further purchases.
Advocates of the strategy believe it could dramatically reshape perceptions of both GameStop and Bitcoin.
“If GameStop embarks on the leveraged Bitcoin equity strategy, it will blow the minds of many traditional finance investors who dismiss both GME and Bitcoin as jokes,” commented John Haar, managing director at Swan Bitcoin, in a February 25 X post.
GameStop’s potential pivot to Bitcoin follows its notable role in the 2020-2021 meme stock craze, which saw retail investors orchestrate a short squeeze via Reddit.
The company’s stock soared nearly 11,500% between April 2020 and January 2021, jumping from $0.70 to $81.25, according to Google Finance.
The letter from Cole comes on the heels of a February 13 report suggesting that GameStop was exploring investments in Bitcoin and other alternative assets.
In his proposal, Cole urged the company to expand its Bitcoin holdings through new equity issuances, including at-the-market offerings and convertible debt securities.
He also recommended that GameStop close underperforming stores and bolster its online operations, potentially freeing up additional capital for Bitcoin acquisitions.
Cole argued that a Bitcoin treasury strategy would transform GameStop “from meme stock to market leader” while serving as a hedge against inflation.
He emphasized that Bitcoin should be the company’s sole cryptocurrency investment, positioning it as a “disciplined, forward-looking organization” committed to long-term shareholder value.
GameStop’s Bitcoin Interest Mirrors MicroStrategy’s Influence on Corporate Adoption
GameStop’s interest in Bitcoin parallels the strategies of other firms like MicroStrategy—now branded Strategy—whose aggressive Bitcoin acquisitions have inspired companies such as Metaplanet and Semler Scientific to adopt similar approaches.
As reported, Strategy has announced plans to raise $2 billion through 0% senior convertible notes to further expand its Bitcoin holdings.
The company stated that net proceeds from the offering will primarily fund new Bitcoin acquisitions, with a portion allocated for general working capital.
The announcement came as the firm owns 478,740 BTC, valued at approximately $47 billion, with a dollar-cost average purchase price of $65,000 per coin.
It is worth noting that several U.S. states, including Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, have also introduced bills that could enable them to hold Bitcoin and other cryptos as reserve assets.
