GameStop Pressured by Strive CEO Matt Cole to Move Its $5B Cash Into Bitcoin.

GameStop Urged to Adopt Bitcoin Treasury Strategy by Strive CEO

Matt Cole, CEO of Strive Asset Management, has called on GameStop (GME) to allocate its $5 billion cash reserve into bitcoin (BTC), arguing that such a move could redefine the company’s financial future and position it as a leader in the gaming industry’s digital asset adoption.

In a letter sent on Feb. 24 to GameStop Chairman and CEO Ryan Cohen, Cole emphasized that holding BTC instead of cash could enhance the company’s financial resilience and offer protection against inflation.

“GameStop has a rare opportunity to transform itself into the premier bitcoin treasury company within the gaming sector,” Cole stated.

Strive, an asset management firm co-founded by Vivek Ramaswamy, holds GameStop shares across multiple ETFs, giving it a vested interest in the company’s long-term strategy. However, Cole did not disclose the size of Strive’s holdings.

The letter arrives amid speculation that GameStop is exploring alternative investments, including bitcoin and other digital assets, as part of its broader corporate strategy.

Cole highlighted GameStop’s improved financial position, noting that the company has reduced operating losses and leveraged interest income from cash reserves to stabilize its balance sheet. He suggested that converting those reserves to bitcoin would provide a hedge against monetary debasement, arguing that holding cash results in negative real returns over time.

Additionally, Cole advised GameStop to focus exclusively on bitcoin while steering clear of other cryptocurrencies. He also recommended that the company take advantage of capital markets through at-the-market (ATM) stock offerings and convertible debt instruments, a playbook successfully used by firms like MicroStrategy, Semler Scientific, and MARA Holdings.

Several publicly traded companies that have integrated bitcoin into their treasury strategies have seen stock price appreciation and expanded fundraising opportunities, Cole noted.

The letter concluded with Cole commending GameStop’s recent business moves, including closing underperforming stores and rejecting diversity, equity, and inclusion (DEI) initiatives.

“We recognize GameStop’s leadership in prioritizing profitability and rejecting DEI distractions,” Cole wrote.