GameStop Urged To Reinvent Strategy By Investing $5 Billion In Bitcoin

By: Eliza Bennet

In a recent call to action, Strive Asset Management has advocated for GameStop to allocate a significant portion of its $5 billion cash reserves into Bitcoin. CEO Matt Cole of Strive detailed this strategic financial pivot in a letter dated February 24th, addressing how Bitcoin could revolutionize GameStop's market standing and financial direction.

The emphasis of the proposal was on Bitcoin's role as a treasury asset, poised to convert GameStop from a momentum-driven stock to an industry leader capable of establishing long-term shareholder value. Cole argued that a shift from depreciating fiat to Bitcoin would not only stabilize GameStop financially but position it closer to being a pioneer within the gaming sector. This recommendation also aims to inspire a transformation in the company's financial metrics, which could see GameStop rising above its current speculative nature.

The merits of Bitcoin, according to Strive, lie in its decentralized nature, limited supply, and the uptick in mainstream acceptance, all factors that propose it as a hedge against inflation and a viable savings asset. The advocacy came with the caution against diversification into other cryptocurrencies, spotlighting Bitcoin's unique status as "digital gold" and the only asset within the realm of digital currencies that has achieved widespread institutional endorsement. Strive's proposal suggests leveraging capital markets for additional Bitcoin procurement through methods like at-the-market offerings and convertible debt securities, thereby securing liquidity for further Bitcoin acquisition, setting the stage for strategic expansions in the gaming industry.

Despite some shareholders speculating over a potential "Mother Of All Short Squeezes" (MOASS), Strive remains firm in its belief that Bitcoin serves as a healthier alternative, equipping GameStop for future growth initiatives and potential mergers and acquisitions. The guidance suggests that once sufficiently stocked with Bitcoin, GameStop can utilize these holdings as collateral for strategic ventures when the expected returns surpass those of Bitcoin itself.