Retail Giant Urged to Convert Cash Reserves into Bitcoin
GameStop has received a proposal from Strive Asset Management urging the company to convert nearly $5 billion in cash reserves into Bitcoin. Strive argues that the move would position GameStop as the premier Bitcoin treasury company in the gaming industry.
GameStop Chairman and CEO Ryan Cohen acknowledged the proposal with a brief “Letter received” post on social media Tuesday, but the company has not commented further on whether it will consider the plan.
Why Bitcoin? Strive’s Argument
Strive Asset Management, co-founded by former U.S. presidential candidate Vivek Ramaswamy, advocates for shareholder-driven corporate strategies over environmental, social, and governance (ESG) considerations.
The firm argues that:
- Bitcoin is a better long-term asset than cash, which they call a “shrinking asset” due to inflation.
- Recent accounting rule changes allow companies to recognize unrealized Bitcoin gains as profit, making BTC a more attractive treasury asset.
- Alternative cryptocurrencies should be avoided, as Bitcoin is the only true store of value in digital assets.
- GameStop’s failed NFT marketplace serves as a cautionary tale for investing in speculative crypto ventures.
To fund Bitcoin purchases, Strive suggested GameStop raise capital via at-the-market stock offerings and convertible debt securities, leveraging its high trading volume.
Strategic Shift? Store Closures and Digital Focus
Beyond Bitcoin, Strive’s letter also recommended that GameStop:
✅ Continue closing underperforming stores, applauding its exit from Canada, France, and Germany.
✅ Prioritize e-commerce and AI-driven services, rather than maintaining a large retail footprint.
With gaming shifting toward digital downloads, Strive sees brick-and-mortar retail as increasingly obsolete.
Could GameStop Really Buy Bitcoin?
Bitcoin is currently trading below $89,000, down from its $109,000 all-time high in January. The broader crypto market has faced volatility, including a $1.5B Bybit hack adding to uncertainty.
Speculation about Cohen’s stance on Bitcoin has grown after he was photographed with MicroStrategy CEO Michael Saylor, a well-known Bitcoin advocate.
However, GameStop has not confirmed any plans to invest in BTC, and its stock fell 2.36% to $24.32 following the news.
What’s Next for GameStop and Bitcoin?
While the Bitcoin treasury proposal remains unanswered, Cohen has hinted at GameStop adopting a leaner business model focused on “value-added” items.
If the company does move forward with a Bitcoin investment, it could trigger renewed interest in GameStop’s stock among retail traders and crypto enthusiasts.
For now, the ball is in GameStop’s court—but the crypto community will be watching closely.
