Raja Waric

GameStop has responded to a letter from Strive Asset Management urging the gaming retailer to add Bitcoin to its balance sheet.

GameStop CEO Ryan Cohen confirmed in a Tuesday post on X that he had received a letter from Strive CEO Matt Cole, recommending that the gaming retailer and meme stock sensation from the pandemic era use roughly $5 billion of its cash reserves to buy Bitcoin and use market offerings to finance more BTC purchases.

“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector,” Cole said in the letter dated Feb. 24.

GameStop Chairman and CEO Ryan Cohen said, “Letter received” on the X platform on February 25 without elaborating further. 

As per the proposal, Strive’s customers hold shares of GameStop via the asset management’s exchange-traded funds (ETFs), giving the company “a fiduciary responsibility and vested interest” in the success of GameStop.

Cole argues that Bitcoin is a superior alternative to holding cash as the crypto is an inflation hedge in terms of outpacing monetary debasement. Strive’s CEO suggests GameStop should focus on Bitcoin and avoid other cryptocurrencies, calling the benchmark crypto the “only true store of value” among digital assets.

Cole cautioned that speculative investments in alternative tokens could jeopardize financial stability, citing GameStop’s failed non-fungible token marketplace as a prime example of the risks of expanding into unproven digital assets. Instead, he believes that a Bitcoin-only approach would strengthen GameStop’s image as a “disciplined, forward-looking organization” while safeguarding long-term shareholder returns.

Strive proposed that GameStop raise additional capital via at-the-market stock offerings and convertible debt securities to purchase more Bitcoin. He also said that Bitcoin’s scarcity and growing institutional adoption position it as a long-term hedge against inflation and a “true savings asset.”

Cole’s proposal follows a report earlier this month that GameStop was considering investing in Bitcoin and alternative asset classes.

Notably, Gamestop’s acknowledgment of Strive’s letter comes as Bitcoin trades below $90,000, down from a peak of over $108,786 in January. Broadly, the crypto market has endured intense volatility, with a recent $1.5 billion hack on the Bybit crypto exchange exacerbating the already dire situation. 

As of press time, it’s unclear whether or not GameStop intends to heed Strive’s proposal.

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