The calls for GameStop to add Bitcoin (BTC) to its balance sheet have peaked with one investor penning a letter to the company CEO to make the move. The letter urges the video game retailer to buy BTC with its cash reserves of nearly $5 billion.
Matt Cole, CEO of Strive Asset Management has nudged GameStop to convert its $5 billion cash reserves to BTC to redefine itself. Cole, in a letter to GameStop CEO Ryan Cohen, noted the purchase will move the retailer from “meme stock to market leader.”
Following the surge of its stock price, fuelled by Reddit’s WallStreetBets forum, the company earned the moniker of meme stock. Aware of the tag, the firm has taken steps to cut operating losses and increase income via equity offerings.
While these steps represent a measure of progress, Cole says adding the top cryptocurrency to the company’s balance sheet will be the silver bullet. Per the letter, GameStop’s proposed acquisition of BTC will open doors for capital deployment while serving as hedge against inflation.
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector,” wrote Cole.
GameStop has previously hinted at adding cryptocurrencies to its balance sheet, sparking criticisms from Peter Schiff. Per the letter, Cole urges GameStop to narrow its focus to BTC, citing convertible debt security applications.
Outside of buying only Bitcoin, the letter recommends that GameStop mirrors the moves of other companies in accumulating the asset. MARA Holding and Semler Scientific have steadily increased the size of their BTC holdings with the Strive buying 20,356 BTC.
Strive CEO urged the company to pay keen attention to the capital market utility of Bitcoin on its balance sheet. For Cole, companies that have added BTC to their balance sheets have seen their valuations spike in line with the asset’s price rally.
Furthermore, Cole notes that since Strive clients are holders of GameStop shares via ETFs, both CEOs have a “fidicuary duty” to turn to BTC.
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