GameStop Receives Bitcoin Proposal from Strive Asset Management

GameStop has received a proposal from Strive Asset Management recommending that the video game retailer convert nearly $5 billion in cash reserves into Bitcoin. According to Strive, this move would transform the company into the “premier Bitcoin treasury company in the gaming sector.”

The proposal, dated February 24 and signed by Strive CEO Matt Cole, was acknowledged by GameStop Chairman and CEO Ryan Cohen. He posted “Letter received” on social media without further elaboration.

GameStop has not publicly commented on Strive’s proposal and did not immediately respond to Decrypt’s request for comment.

Strive, co-founded by Vivek Ramaswamy, advocates for corporate strategies prioritizing shareholder value over environmental, social, and governance considerations. The firm’s letter argues that Bitcoin is a better alternative to holding cash, deemed a “shrinking asset” due to inflation.

It highlights recent accounting rule changes allowing companies to recognize unrealized Bitcoin gains as profit, making Bitcoin a more attractive corporate treasury asset. Strive urged GameStop to avoid investing in other cryptocurrencies, calling Bitcoin the only “true store of value.”

The proposal warns that speculative investments in alternative tokens could undermine financial stability, citing GameStop’s unsuccessful NFT marketplace as an example of risks.

Additionally, Strive called for GameStop to reduce its retail footprint, praising its exit from Canada, France, and Germany, while recommending further closures as the gaming industry shifts to digital sales. It suggested focusing on e-commerce and AI-driven services instead of unprofitable physical locations.

To fund Bitcoin purchases, Strive proposed that GameStop raise additional capital through at-the-market stock offerings and convertible debt securities, arguing its high trading volume makes this feasible. Strive believes Bitcoin’s scarcity and increased institutional adoption position it as a long-term hedge against inflation and a strategic reserve asset.

This proposal arrives as Bitcoin trades below $89,000, down from a peak of over $109,000 in January amid heightened crypto market volatility, with a recent $1.5 billion hack on exchange Bybit contributing to uncertainty.

Cohen has largely remained silent on the long-term strategy but has indicated a shift toward a leaner model with a focus on “value-added” items. Earlier this month, he shared a photo with Strategy CEO Michael Saylor, fueling speculation about considering Bitcoin as a viable investment.

GameStop’s stock, popular among retail traders, closed down 2.36% at $24.32, with little change in after-hours trading.