GameStop CEO Ryan Cohen confirmed via social media platform X that he has received a proposal from Strive Asset Management advocating for the company to adopt Bitcoin (BTC) as a reserve asset.
The letter, dated February 24, outlines a compelling case for GameStop to leverage its substantial cash reserves—nearly $5 billion—to redefine its position in the market.
From Crypto Wallets To NFTs—Is Bitcoin Next?
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, particularly given its stable balance sheet.
This financial strength would reportedly provide GameStop with the opportunity to engage in more “dynamic and potentially lucrative initiatives,” including the acquisition of Bitcoin as a reserve asset.
Historically, GameStop’s foray into the cryptocurrency and blockchain space has been mixed. In 2022, the company launched a self-custodial crypto wallet, enabling customers to manage their digital assets, from cryptocurrencies to non-fungible tokens (NFTs).
This move was part of a broader strategy to expand GameStop’s reach into the digital asset ecosystem, indicating a willingness to innovate and adapt to changing market conditions.
Additionally, GameStop introduced an NFT marketplace later in 2022, built on the Ethereum-based Loopring Layer 2 network. This platform aimed 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 entrenching its presence in the digital asset arena.
GameStop Faces Stock Struggles
Despite these initiatives, the firm’s stock has faced challenges, with shares down 22% year-to-date. This decline highlights the volatility and unpredictability of the market, particularly in the wake of the meme stock phenomenon that propelled the company’s stock price to unprecedented heights in 2021.
Market analysts have weighed in on the potential implications of adopting Bitcoin. Notably, experts like Luke Broyles remarked that 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, according to the expert, allowing it to diversify its assets and potentially stabilize its financial outlook.
Despite this initiative, Bitcoin has seen a notable drop with 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 reached back in January.
Featured image from DALL-E, chart from TradingView.com
