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GameStop Urged to Convert Its $5B Cash Into Bitcoin by Strive's CEO Matt Cole
GameStop has a unique opportunity to redefine itself as a market leader with its nearly $5 billion cash reserve, the letter said.
Feb 25, 2025, 4:28 p.m.
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What to know:
- CEO of Strive Asset Management sent a letter to GameStop's Chairman and CEO, Ryan Cohen, to shift its cash reserves into bitcoin.
- Gamestop has nearly $5 billion in cash on its balance sheet.
- Cole makes the case in the letter that bitcoin is the new hurdle rate for capital deployment.
Matt Cole, CEO of Strive Asset Management—an investment firm co-founded by Vivek Ramaswamy—has urged GameStop to adopt bitcoin as a reserve asset.
Cole sent a letter to Ryan Cohen, Chairman and CEO of GameStop (GME), on Feb. 24. According to Cole, GameStop has a unique opportunity to redefine itself as a market leader with its nearly $5 billion cash reserve.
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"We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector."
According to the letter, Strive's clients hold shares of GameStop through the asset management's exchange-traded funds (ETFs), giving the firm "a fiduciary responsibility and vested interest" in GameStop's success. Cole said his firm holds GME stock in three different ETFs without disclosing the amount.
The letter comes after reports surfaced earlier this month about GameStop considering investing in alternative investments, including bitcoin and cryptocurrencies.
In the last two years, GameStop has reduced its operating losses and managed to offset these deficits through interest income from cash holdings generated from equity offerings, the letter said. These initiatives have stabilized GME's balance sheet and positioned the company for "dynamic strategic moves," the letter adds.
Cole argues that bitcoin will be the new "hurdle rate" for capital deployment. The letter also argues that cash is a negative real return; bitcoin is deemed an inflation hedge in terms of outpacing monetary debasement. Strive's CEO suggests GameStop should focus on bitcoin and avoid other cryptocurrencies while leveraging capital markets to issue at-the-market (ATM) offerings and convertible debt securities.
The letter's suggestion mirrors what several other companies, including MicroStrategy, Semler Scientific and MARA Holdings, are already deploying. Most of the larger-cap stocks that have bought bitcoin in the open market have seen not only their stock price rally but also opened up new avenues for capital raises.
The letter ends with Cole applauding GameStop for closing unprofitable stores and publicly rejecting diversity, equity, and inclusion (DEI) programs.
Cole says, "We applaud the leadership your firm has already taken to close many unprofitable stores and publicly reject DEI."
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‘Bitcoin to zero’ searches spike in the U.S., but the bottom signal is mixed
Google Trends data shows the term hit a record high in the U.S. this month, though global interest has fallen since peaking in August.
Що варто знати:
- U.S. searches for “bitcoin zero” on Google hit a record high in February as BTC slid toward $60,000 after hitting a peak in October.
- In the rest of the world, searches for the term peaked in August, suggesting fear is concentrated in the U.S. rather than worldwide.
- Similar U.S. search spikes in 2021 and 2022 coincided with local bottoms.
- Because Google Trends measures relative interest on a 0-to-100 scale amid a much larger bitcoin user base today, the latest U.S. spike signals elevated retail anxiety, but does not reliably guarantee a clean contrarian reversal.
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