With several companies exploring the idea of creating a Bitcoin treasury to diversify their balance sheets and gain exposure to the digital economy, American video game giant GameStop has also been suggested to do the same.
Strive CEO Recommends Bitcoin Treasury to GameStop
According to president of The ETF Store, Nate Geraci, Matt Cole, the CEO of ETF issuer Strive, sent a letter to GameStop Chairman and CEO Ryan Cohen on February 24. The letter proposed that GameStop shift its nearly $5 billion cash reserves into Bitcoin, positioning the company as the top Bitcoin treasury company in the gaming industry.
Cole wrote, “With nearly $5 billion in cash on its balance sheet, the firm is uniquely positioned to shift its reserves from a shrinking asset to a growth engine, propelling GameStop from meme stock to market leader, one Bitcoin at a time.”
In the letter, Cole pointed out that while GameStop has significantly reduced its operating losses over the past two years and offset some deficits with interest income from cash holdings generated by equity financing, the company’s core challenges remain. Physical retail is in decline, and consumer preferences are shifting toward digital game downloads.
As an asset management firm that holds GameStop shares through an exchange-traded fund, Strive believes that GameStop has an “incredible opportunity” to reshape its financial future by becoming the gaming industry’s leading Bitcoin treasury company.
The letter mentioned that GameStop is already considering buying Bitcoin and other cryptocurrencies to address business challenges, but Strive emphasized that the execution strategy is critical to success, offering specific suggestions to guide the company.
It’s worth noting that several non-Web3 firms have already ventured into the Bitcoin treasury space. Among them, MicroStrategy stands out with its holdings of 499,096 BTC as of February 24. Meanwhile, Japanese firm Metaplanet recently acquired an additional 135 BTC for $12.9 million, bringing its total Bitcoin holdings to 2,235 BTC.
Also Read: Peter Schiff Mocks Bitcoin’s ‘Bear Market’ as South Dakota Kills Investment Bill
