Strive CEO Urges GameStop to Convert $5B Cash Reserve Into Bitcoin
Matt Cole, CEO of Strive Asset Management, has called on GameStop (GME) to adopt bitcoin (BTC) as a strategic reserve asset, positioning itself as a leader in financial innovation within the gaming industry.
In a letter sent on Feb. 24 to GameStop Chairman and CEO Ryan Cohen, Cole emphasized that the company’s nearly $5 billion cash reserve presents a rare opportunity to redefine its future.
“GameStop has a unique chance to secure its financial position by becoming the premier bitcoin treasury company in gaming,” Cole wrote.
Strive Asset Management, co-founded by Vivek Ramaswamy, holds GameStop shares across multiple exchange-traded funds (ETFs), giving it a “fiduciary responsibility and vested interest” in the company’s success, according to the letter. While Cole did not disclose the exact number of shares held, he stated that GameStop is included in at least three Strive-managed ETFs.
The timing of the letter aligns with recent speculation that GameStop has been exploring alternative investments, including bitcoin and other digital assets.
Over the past two years, GameStop has significantly reduced its operating losses, stabilizing its balance sheet through interest income generated from equity offerings and cash reserves. These financial improvements, Cole argues, set the stage for “dynamic strategic moves”—including a shift toward bitcoin as a primary store of value.
Cole also contends that bitcoin is emerging as the new benchmark for capital allocation, stating that holding cash delivers a “negative real return” due to inflation. He suggests that GameStop should focus solely on bitcoin while steering clear of other cryptocurrencies. Additionally, he advises the company to leverage capital markets by issuing at-the-market (ATM) offerings and convertible debt securities, a strategy successfully implemented by companies like MicroStrategy, Semler Scientific, and MARA Holdings.
According to Cole, firms that have integrated bitcoin into their balance sheets have not only seen significant stock price appreciation but have also unlocked new funding opportunities.
The letter concludes with Cole praising GameStop for its cost-cutting measures, including store closures, and its public stance against diversity, equity, and inclusion (DEI) initiatives.
“We commend GameStop’s leadership in shutting down unprofitable stores and rejecting DEI,” Cole stated.
