GameStop Urged to Bet Big on Bitcoin

GameStop CEO Ryan Cohen has acknowledged receipt of a proposal from Strive Asset Management, urging the gaming retailer to convert a significant portion of its cash reserves into Bitcoin. The proposal, outlined in a letter dated February 24, suggests that GameStop should use approximately $5 billion of its cash to purchase Bitcoin and explore financing options for further BTC acquisitions.

Strive's CEO, Matt Cole, believes that GameStop has a unique opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector. He argues that Bitcoin is a superior alternative to holding cash, as it serves as an effective inflation hedge and a true store of value among digital assets. Cole cautions against speculative investments in alternative cryptocurrencies, citing GameStop's failed non-fungible token marketplace as an example of the risks associated with expanding into unproven digital assets.

Strive's proposal suggests that GameStop raise additional capital through at-the-market stock offerings and convertible debt securities to fund further Bitcoin purchases. Cole emphasizes that Bitcoin's scarcity and growing institutional adoption position it as a long-term hedge against inflation and a true savings asset. This proposal follows a recent report that GameStop was considering investing in Bitcoin and alternative asset classes.

GameStop's acknowledgment of Strive's letter comes amidst intense volatility in the crypto market, with Bitcoin trading below $90,000, down from its January peak of over $108,786. A recent $1.5 billion hack on the Bybit crypto exchange has further exacerbated the situation. As of press time, it remains unclear whether GameStop intends to follow Strive's proposal.