GameStop Encouraged to Use $5 Billion Cash Reserve for Bitcoin Investment
Matt Cole, CEO of Strive Asset Management, has recommended that GameStop (GME) adopt bitcoin as a reserve asset. He sent a letter to Ryan Cohen, Chairman and CEO of GameStop, highlighting the company's nearly $5 billion cash reserve as an opportunity for transformation.
Key points from Cole's letter include:
- GameStop could redefine itself by becoming a leading bitcoin treasury company in the gaming sector.
- Strive's clients hold GME shares through its ETFs, giving the firm a vested interest in GameStop's success.
- GameStop has stabilized its balance sheet by reducing operating losses and generating interest income from cash holdings.
- Cole views bitcoin as a better alternative to cash, citing its potential as an inflation hedge against monetary debasement.
- The suggestion aligns with strategies adopted by companies like MicroStrategy and MARA Holdings, which have seen stock price rallies after purchasing bitcoin.
Cole commended GameStop for closing unprofitable stores and rejecting diversity, equity, and inclusion (DEI) initiatives.