- An investor wants GameStop to use $5 billion in cash reserves to buy Bitcoin for financial growth and stability.
- The company has not yet responded to the proposal to invest in Bitcoin as a way to protect against inflation.
- Other companies have increased Bitcoin holdings and the investor believes GameStop should follow the same strategy.
GameStop is facing calls to allocate its $5 billion cash reserves to Bitcoin. Strive Asset Management CEO Matt Cole has sent a letter to GameStop CEO Ryan Cohen, urging the company to embrace Bitcoin as a financial strategy.
Cole argues that holding Bitcoin would help the company protect its reserves against inflation. He believes the move would strengthen the company’s financial position and boost its market standing.
Meme Stock to Market Leader
The surge of retail investors contributed to its status as a popular “meme stock” through its increased share price. Since achieving its meme stock popularity, the company dedicated its efforts to diminishing operating losses and growing revenue while issuing new shares. Cole asserts that adding Bitcoin would further solidify its transformation.
Other firms, including MARA Holding and Semler Scientific, have expanded their Bitcoin holdings. Strive Asset Management has also made significant Bitcoin investments. Cole suggests that GameStop could follow a similar path to enhance its capital market utility.
Impact on Shareholders and Institutional Interest
Strive manages funds that hold GameStop shares via exchange-traded funds (ETFs). Cole emphasizes that both companies have a responsibility to maximize shareholder value. He believes adopting Bitcoin would attract institutional investors and improve GameStop’s appeal.
The letter advises the company to avoid other cryptocurrencies, citing Bitcoin’s unique status as a reliable store of value. Strive describes Bitcoin as digital gold with strong market recognition and long-term resilience.
Response from GameStop Leadership
The CEO Ryan Cohen acknowledged receiving the letter but has not provided an official response. The company has not indicated whether it will seriously consider the recommendation.
Market observers have mixed reactions to the proposal. Some believe the move could revolutionize its financial strategy, while others question its viability. Strive remains firm in its stance, arguing that Bitcoin would position the company for long-term success.
