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.

American video game giant GameStop has been suggested to create a Bitcoin treasury to diversify its balance sheet and gain exposure to the digital economy, especially as several companies have already explored this avenue.

Strive CEO Recommends Bitcoin Treasury to GameStop

President of The ETF Store, Nate Geraci, highlighted that the CEO of ETF issuer Strive, Matt Cole, penned a letter to GameStop Chairman and CEO Ryan Cohen on February 24. In the letter, Cole recommended that GameStop convert its nearly $5 billion cash reserves into Bitcoin, aiming to position the company among the top Bitcoin treasury companies in the gaming industry.

Cole stated in the letter, “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.”

According to Geraci’s post on X, Cole also noted that while GameStop has managed to reduce its operating losses significantly over the past two years and offset some deficits with interest income from cash 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 the company 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 crucial to success, offering specific suggestions to guide the company.

It’s noteworthy 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.