- Strive urges GameStop to convert $5 billion in cash reserves into Bitcoin as an inflation hedge.
- The firm highlights new accounting rules allowing unrealized Bitcoin gains as profit.
- GameStop has yet to comment on whether it will adopt Strive’s Bitcoin strategy.
Strive Asset Management has presented GameStop with a bold proposal to convert nearly $5 billion in cash reserves into Bitcoin. The recommendation, outlined in a February 24 letter signed by Strive CEO Matt Cole, received acknowledgment from GameStop Chairman and CEO Ryan Cohen. He simply posted “Letter received” on social media Tuesday without providing additional context.
Strive is an investment firm co-founded by former U.S. presidential candidate Vivek Ramaswamy. The company frames its proposal within its broader investment philosophy that emphasizes shareholder value over environmental, social, and governance (ESG) considerations. The firm makes several key arguments to support its Bitcoin conversion strategy.
Strive’s recommendation is the assertion that cash represents a “shrinking asset” in the current economic environment due to inflation. The proposal highlights recent accounting rule changes, allowing companies to recognize unrealized Bitcoin gains as profit.
Notably, Strive specifically cautioned GameStop against diversifying into other cryptocurrencies. They described Bitcoin as the only “true store of value” among digital assets. The letter points to GameStop’s previous unsuccessful NFT marketplace as evidence of the risks associated with speculative investments in alternative tokens.
Beyond the Bitcoin conversion strategy, Strive also advocated for a more comprehensive restructuring of GameStop’s business model. The proposal calls for further reduction in the company’s retail footprint, acknowledging GameStop’s exit from Canada, France, and Germany as positive steps. Strive suggests accelerating store closures in response to the industry’s ongoing shift toward digital game distribution.
Related: Bitcoin Falls Below $95K, Hits $91K Amid Market Volatility
The investment firm also shared potential funding mechanisms for the Bitcoin acquisition strategy. The firm recommended that GameStop use its high trading volume to raise additional capital through at-the-market stock offerings and convertible debt securities. Strive argues that Bitcoin’s scarcity and growing institutional adoption position it as an effective long-term hedge against inflation.
This proposal arrives during a period of volatility in cryptocurrency markets, with Bitcoin trading below $89,000, down from its January peak of over $109,000. The broader cryptocurrency landscape has faced additional uncertainty following the $1.5 billion hack on Bybit. GameStop has not issued any official statement regarding whether it will consider implementing Strive’s proposal.
