Strive Asset Management CEO Matt Cole has urged GameStop to convert its $5 billion cash reserves into Bitcoin (BTC), encouraging the company to redefine itself and transition from a “meme stock” to a “market leader.” In a letter addressed to GameStop CEO Ryan Cohen, Cole highlighted that purchasing Bitcoin would provide the video game retailer with a transformative opportunity to solidify its financial future.
The call for GameStop to buy Bitcoin comes amid the company’s efforts to recover from its meme stock status, which was amplified by the Reddit-driven WallStreetBets forum. Since then, the company has taken steps to cut operational losses and increase income through equity offerings. However, Cole believes that adding Bitcoin to GameStop’s balance sheet would be a pivotal move, offering both capital deployment opportunities and a hedge against inflation.
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector,” Cole wrote in the letter.
GameStop has previously signaled its interest in incorporating cryptocurrency into its balance sheet, drawing mixed reactions, including criticism from prominent figures such as Peter Schiff. However, Cole suggests that the company should focus exclusively on Bitcoin, citing its utility in convertible debt security applications and capital market strategies.
The letter further references other companies, such as MARA Holding and Semler Scientific, which have steadily increased their Bitcoin holdings, and Strive itself, which has purchased 20,356 BTC. Cole advocates for GameStop to follow suit, noting that companies that have added Bitcoin to their balance sheets have seen their valuations rise alongside the cryptocurrency’s price.
As Strive clients hold GameStop shares through ETFs, Cole emphasizes the fiduciary duty of both CEOs to consider Bitcoin as a key asset on GameStop’s balance sheet.
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