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Date: 2025-02-25 18:08:39
Matt Cole, the CEO of Strive Asset Management, has called on GameStop to incorporate Bitcoin as a reserve asset, arguing that this move could significantly alter the company's financial strategy.
In a letter addressed to GameStop's Chairman and CEO Ryan Cohen on February 24, Cole proposed that GameStop's almost $5 billion in cash reserves could be used to establish the company as a frontrunner in the gaming industry.
"We are of the opinion that GameStop has an unparalleled chance to revolutionize its financial prospects by becoming the leading Bitcoin treasury company in the gaming sector," Cole stated.
Strive, which was co-founded by Vivek Ramaswamy, manages exchange-traded funds that include GameStop shares, giving the company what Cole refers to as a fiduciary obligation and vested interest in GameStop's success.
Although Cole did not reveal the exact amount of GameStop shares held, Strive maintains exposure through three distinct ETFs.
Yesterday, Strive sent GameStop an engagement letter advocating for the adoption of Bitcoin as the foundation of their treasury. We believe this change can elevate $GME from a "meme stock" to a gaming-sector leader, driving long-term value for shareholders—including our clients who hold…
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Cole's letter arrives following reports that GameStop has been contemplating alternative investments, such as cryptocurrencies. In the past two years, the company has decreased operating losses and offset deficits with interest income generated from its cash reserves.
According to Cole, reallocating reserves into Bitcoin (BTC) would serve as a safeguard against inflation and a strategic transition towards long-term capital growth.
This proposal coincides with actions taken by companies like MicroStrategy and Semler Scientific, which have integrated Bitcoin into their treasuries.
Cole stressed that GameStop should concentrate solely on Bitcoin while utilizing capital markets through at-the-market offerings and convertible debt securities.