Key Takeaways
- Strive's CEO urged GameStop to invest its $5 billion cash into Bitcoin.
- Strive holds GameStop shares across three ETFs, though the amount is undisclosed.
- Cole cites companies like MicroStrategy as examples of Bitcoin-driven success.
Matt Cole, CEO of Strive Asset Management, sent a letter to GameStop’s Chairman and CEO, Ryan Cohen, on Feb. 24, advocating for the company to shift its cash reserves into Bitcoin.
Cole argues that Bitcoin should be considered the “new hurdle rate for capital deployment,” given its potential as an inflation hedge.
GameStop’s financial position
GameStop currently holds nearly $5 billion in cash, with recent financial moves stabilizing its balance sheet.
The company has reduced operating losses and offset deficits through interest income generated from previous equity offerings.
According to Cole, this strong position enables GameStop to make a “dynamic strategic move” into Bitcoin.
Strive’s stake in GameStop
Strive Asset Management, co-founded by Vivek Ramaswamy, holds GameStop shares across three of its exchange-traded funds (ETFs).
Cole states that Strive has a “fiduciary responsibility and vested interest” in GameStop’s success, though he did not disclose the specific amount of shares held.
Parallels to other companies
Cole pointed to companies like MicroStrategy, Semler Scientific, and MARA Holdings, which have integrated Bitcoin into their corporate strategies.
He emphasized that firms buying Bitcoin have not only seen stock price gains but also new opportunities for capital raises.
Letter applauds GameStop’s recent moves
The letter concludes with Cole praising GameStop for closing unprofitable stores and rejecting diversity, equity, and inclusion (DEI) programs.
Cole wrote:
We applaud the leadership your firm has already taken to close many unprofitable stores and publicly reject DEI.
