GameStop has received a bold proposal that could redefine its financial future. On February 24, 2025, Matt Cole, CEO of Strive Asset Management, sent a letter to GameStop’s Chairman and CEO, Ryan Cohen, urging the company to shift its nearly $5 billion in cash reserves into Bitcoin. Cole argued that this move would not only protect the company from inflation but also position it as a leader in the gaming industry by embracing digital assets.

In his letter, Cole emphasized the risks of holding large amounts of cash, citing the erosion of purchasing power due to inflation. While the Federal Reserve’s interest rates remain between 4.25% and 4.5%, the U.S. money supply has historically expanded at a faster pace, diminishing the real value of cash reserves. He argued that Bitcoin, with its fixed supply and growing adoption among institutional investors, offers a more sustainable long-term strategy for GameStop’s treasury.

Beyond the financial benefits, Cole highlighted how Bitcoin could accelerate GameStop’s ongoing transformation. He acknowledged that the company has already taken steps to stabilize its balance sheet, reducing operating losses while generating interest income from its cash holdings.

However, Cole noted that GameStop’s biggest challenge remains the decline of brick-and-mortar retail, as consumers increasingly prefer digital game downloads. By shifting its reserves into Bitcoin, Cole believes GameStop could not only hedge against inflation but also leverage its cryptocurrency holdings to fund future expansion into digital commerce.

Strive CEO also advised GameStop to maintain a strict focus on Bitcoin rather than diversifying into other cryptocurrencies, warning that speculative digital assets could introduce unnecessary financial risks. He pointed to Bitcoin’s unique status as “sound money” and its growing acceptance among corporations, institutional investors, and even governments. Investing in altcoins, he cautioned, could undermine shareholder confidence and distract from the company’s core strategy.

In addition to restructuring its treasury, Cole encouraged GameStop to accelerate its transition away from physical retail. He praised the company’s recent decisions to exit markets like Canada, France, and Germany, suggesting that further store closures could help cut costs and increase profitability. He also urged GameStop to prioritize e-commerce, expanding its digital sales and gaming-related merchandise to align with shifting consumer trends.

To fund additional Bitcoin purchases, Cole proposed that GameStop tap into capital markets by issuing new shares through an at-the-market (ATM) offering, leveraging its high trading volume to raise funds. He also suggested issuing convertible debt securities, allowing the company to attract investors while maintaining financial flexibility.

More on The Byteline: Pentagon Games and TRON collaborate to launch a decentralized digital world

The letter concluded with a vision for GameStop’s future, arguing that by adopting Bitcoin as its primary reserve asset, the company could move beyond its reputation as a “meme stock” and establish itself as a forward-thinking market leader. Cole suggested that once GameStop builds a significant Bitcoin reserve, it could deploy those assets for strategic acquisitions and expansion in the gaming sector.

GameStop has yet to publicly respond to the proposal, but reports indicate the company has been exploring Bitcoin and other cryptocurrencies. If it follows through on Strive’s recommendations, GameStop could become one of the largest publicly traded companies to embrace Bitcoin as a core treasury asset, potentially reshaping its financial strategy and market position in the process.