Strive Asset Management CEO Matt Cole urged GameStop to adopt Bitcoin as a reserve asset, arguing it could redefine the company’s financial strategy.
Strive's Proposal to GameStop
In a letter sent to GameStop Chairman and CEO Ryan Cohen on Feb. 24, Cole suggested using the company’s nearly $5 billion in cash reserves to position GameStop as a leader in the gaming sector. Strive believes GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector. Strive’s strategy is centered on this proposal as the firm manages funds holding GameStop stock, giving it a fiduciary interest in the company's success.
GameStop's Alternative Investments
Cole’s letter follows reports that GameStop is considering alternative investments, including cryptocurrencies. Over the past two years, the company has reduced operating losses and offset deficits with interest income from its cash holdings.
Why Bitcoin?
According to Cole, reallocating its reserves into Bitcoin would serve as a hedge against inflation and a strategic shift towards long-term capital growth. This proposal aligns with moves by companies like MicroStrategy and Semler Scientific, which have incorporated Bitcoin into their treasuries. Cole emphasized that GameStop should focus solely on Bitcoin while leveraging capital markets through at-the-market offerings and convertible debt securities.
Strive’s proposal could be a significant step for GameStop in changing its financial strategy and solidifying its market position.
