GameStop CEO Ryan Cohen Confirms He Has Received a Proposal from Strive Asset Management Advocating for Bitcoin Adoption

Strive Asset Management suggests that GameStop, the world's largest retail gaming shop, is uniquely positioned to take bold steps in the evolving financial landscape

GameStop CEO Ryan Cohen has confirmed receipt of a proposal from Strive Asset Management suggesting the company adopt Bitcoin (BTC) as a reserve asset. The letter, dated February 24, and seen in a post by Cohen on X (formerly Twitter), outlines a compelling case for the company to leverage its substantial cash reserves, amounting to nearly $5 billion, to redefine its position in the market.

Received a thoughtful letter from Strive Asset Management regarding their vision for GameStop and Bitcoin. Their perspective on the company's potential for greater good is shared by many. As always, the best interest of all stakeholders guides our decision-making.

To the thinking continues… pic.twitter.com/Q4238L9K6E

— Ryan Cohen (@ryancohen) March 1, 2024

Strive Asset Management suggests that GameStop, the world’s largest retail gaming shop, is uniquely positioned to take bold steps in the evolving financial landscape, especially considering its stable balance sheet provides the opportunity for more dynamic and potentially lucrative initiatives. This includes the possibility of acquiring Bitcoin as a reserve asset, a move that could generate significant attention and reposition the company in the minds of consumers and investors.

The letter highlights the company’s foray into the cryptocurrency and blockchain space with the launch of a self-custodial crypto wallet in 2022, enabling customers to manage their digital assets, from cryptocurrencies to non-fungible tokens (NFTs). This move is part of a broader strategy to expand GameStop’s reach into the digital asset ecosystem, showcasing its willingness to innovate and adapt to changing market conditions.

This follows the introduction of an NFT marketplace by the company later in 2022, built on the Ethereum-based Loopring Layer 2 network, aiming to capitalize on the growing interest in digital collectibles and NFTs. The company also formed a partnership with Immutable X, another Ethereum-based Layer 2 scaling solution, to integrate its global order book into the GameStop NFT marketplace, further cementing its presence in the digital asset arena.

However, despite these initiatives, the firm’s stock has faced challenges, with shares down 22% year-to-date. This decline underscores the volatility and unpredictability of the market, especially after the meme stock phenomenon that propelled the company’s stock price to unprecedented heights in 2021.

As experts like Luke Broyles point out, if GameStop were to invest $5 billion in Bitcoin followed by an additional $3 billion raised at $110,000, the company could accumulate approximately 84,090 Bitcoin. Such a strategic move could position the company as a formidable player in the financial landscape, allowing it to diversify its assets and potentially stabilize its financial outlook.

This initiative comes as Bitcoin has seen a 15% correction on the monthly time frame, trading as low as $84,370. This means that the market’s leading crypto is down 23% from its record high of $109,000, which was reached back in January.