Emma Nelson 
Investor Urges GameStop to Invest $5 Billion Cash Reserve in Bitcoin. Calls for GameStop to add Bitcoin (BTC) to its balance sheet have intensified, with one prominent investor urging the company to make a bold move. In a strongly worded letter, the investor advised GameStop CEO Ryan Cohen to use the company’s nearly $5 billion in cash reserves to purchase Bitcoin, arguing that such a move could transform the video game retailer’s financial future.
GameStop Encouraged to Reinvent Itself Through Bitcoin Investment
Matt Cole, CEO of Strive Asset Management, is leading the call for GameStop to convert its $5 billion cash reserves into Bitcoin. In his letter to Ryan Cohen, Cole emphasized that investing in BTC would reposition GameStop from being viewed as a meme stock to a market leader.
GameStop gained the meme stock label after its stock price surged dramatically, fueled by retail investors on Reddit’s WallStreetBets forum. In response, the company has implemented strategies to reduce operating losses and increase revenue through equity offerings.
GameStop
However, Cole argues that while these steps show progress, adding Bitcoin to GameStop’s balance sheet would be a game-changer. He believes this strategic move would not only provide new opportunities for capital deployment but also serve as a hedge against inflation.
In his letter, Cole wrote, “We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector.”
Focus on Bitcoin: The Strategic Advantage
GameStop has previously hinted at adopting cryptocurrencies, which sparked criticism from well-known Bitcoin skeptic Peter Schiff. However, in his letter, Cole strongly advises GameStop to focus exclusively on Bitcoin, highlighting its unique benefits as a convertible debt security and inflation hedge.
Cole recommends that GameStop follow the example of other companies that have successfully accumulated Bitcoin, such as MARA Holding and Semler Scientific, both of which have consistently increased their BTC holdings. Notably, Strive itself recently acquired 20,356 BTC, further demonstrating Cole’s confidence in Bitcoin’s potential.
According to Cole, companies that integrate Bitcoin into their balance sheets have seen increased valuations correlated with BTC’s price growth. He emphasized that GameStop could achieve a similar outcome by strategically investing in Bitcoin.
Bitcoin’s Capital Market Utility and Fiduciary Responsibility
Cole also highlighted the capital market utility of Bitcoin, urging GameStop to capitalize on BTC’s potential as a financial asset. He argued that Bitcoin’s value proposition goes beyond being a digital currency, as it also offers capital appreciation and risk management benefits.
Cole noted that Strive’s clients hold GameStop shares via ETFs, establishing a fiduciary duty for both CEOs to consider Bitcoin as a strategic investment. He argued that investing in BTC would align with the best interests of shareholders, enhancing long-term value.
What’s Next for GameStop?
The bold suggestion to convert $5 billion into Bitcoin has sparked debate among investors and market analysts. If GameStop moves forward with the proposal, it could reshape its financial strategy, potentially boosting its market position and investor sentiment.
However, the decision also comes with risks associated with Bitcoin’s volatility. GameStop’s management will need to carefully evaluate the potential benefits and challenges of making Bitcoin a significant part of its balance sheet.
For now, all eyes are on Ryan Cohen and GameStop’s board as they consider whether to follow the Bitcoin path and potentially redefine the company’s financial future.
