GameStop (GME), known for its position in the gaming industry, has recently made headlines by adopting a bitcoin treasury strategy. This move aligns the company with a growing number of publicly traded firms choosing to hold bitcoin as part of their financial strategy.
Along with its fourth-quarter earnings report, GameStop revealed that its board has unanimously decided to add bitcoin as a treasury reserve asset. This allows the company to hold digital assets on its balance sheet, signaling a shift in its treasury management and aligning with its evolving financial strategy.
GME Surges Over 5%
This announcement gained attention earlier in February when CEO Ryan Cohen posted a photo of himself with Michael Saylor, Executive Chairman of Strategy (MSTR), at Donald Trump’s Mar-a-Lago, sparking curiosity about the company’s future plans in the crypto space.
By the end of 2024, GameStop reported $5.355 billion in current assets but didn’t specify how much of this would be used for Bitcoin purchases. The news led to a 5.9% increase in GME shares during after-hours trading.
Matt Cole Urges Gamestop To Adopt BTC
Matt Cole, CEO of Strive Asset Management, an investment firm co-founded by Vivek Ramaswamy previously called on GameStop to adopt bitcoin as a reserve asset. In a letter to Ryan Cohen, GameStop’s Chairman and CEO, on February 24, Cole argued that with nearly $5 billion in cash reserves, GameStop has a unique chance to transform itself into a market leader.
Strive Asset Management’s clients own GameStop shares through the firm’s exchange-traded funds (ETFs). Cole also mentioned that Strive holds GameStop stock across three different ETFs but did not share how much stock the firm owns.
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector,” Cole wrote. Cohen further fueled the speculation when he tweeted, “Letter received,” in response to Cole’s suggestion.
Growing Trend Of Companies Pursuing BTC Strategy
The letter follows previous reports from that GameStop is considering investing in alternative assets, including bitcoin and cryptocurrencies.
The suggestion in the letter aligns with moves already made by companies like MicroStrategy, Semler Scientific, and MARA Holdings. Cole praised GameStop for closing unprofitable stores and publicly rejecting diversity, equity, and inclusion (DEI) programs.
Bitcoin has risen slightly on the news, now trading at $88,500, up about 0.2% from 24 hours ago.
