Key dealers
- Gamestop received a proposal to invest $ 5 billion in Bitcoin from Strive Asset Management.
- The investment is seen as an opportunity for Gamestop to become an important Bitcoin Treasury player in the gaming sector.
Gamestop CEO Ryan Cohen on Tuesday confirmed That he had received a letter from Matt Cole, CEO of Strive Asset Management, where Cole suggested that the company use its cash reserves to invest in bitcoin.
Video game trader contained approximately $ 4.6 billion in cash piles at the end of the third quarter of 2024, according to a Sec -December disclosure.
Cole sent letter That Cohen on February 24 and state that Gamestop has a unique opportunity to transform itself by becoming the foremost bitcoin Treasury Company in the gaming industry.
“We believe this shift can raise $ GME from” MEME share “to the leadership of the gaming sector, which drives long-term value for shareholders-inclusive of our customers who hold gamestop through our ETFs,” Cole wrote on X.
He claims that Bitcoin will be the new “obstacle frequency” for capital distribution, which indicates that cash provides negative real returns while Bitcoin acts as an inflation hedge.
The proposal recommends Gamestop Focus exclusively at Bitcoin while avoiding other crypto assets and utilizing capital markets through the market and convertible debt securities.
Strives asset management, founded by Vivek Ramasswamy, recently launched the Strive Bitcoin Bond ETFAn investment product designed to provide investors to exposure to bitcoin through convertible securities, primarily associated with the holding of the micro strategy.
ETF will mainly invest in bitcoin bonds and other derivatives such as swaps and alternatives, focusing on direct and derivative positions in Bitcoin-linked securities. It will also hold cash in US state security and potentially invest in other Bitcoin-focused financial instruments.
Gamestop explores bitcoin investments in the middle of retail struggle
The proposal follows a new CNBC report that Gamestop is Considering adding bitcoin And other digital assets to their investment portfolio.
“We realize that Gamestop is investigating how to embrace this opportunity, and we believe that implementation will be crucial for long -term success. That is why we immediately engaged – to encourage not only bold measures but also a clear commitment to Bitcoin, ”Strive CEO noted.
The exploration of crypto investment comes when Gamestop is facing declining sales, with a 20% case reported during the third quarter of 2024 over both hardware and software segments. The company’s traditional brick and mortar companies continue to face challenges as digital games get popularity.
Gamestop’s Board of Directors approved a revised investment policy in January and granted CEO Cohen and his team expanded the authority to invest in shares and other assets.
CEO Cohen also met strategy co-founder Michael Saylor just before the report, although sources indicated that Saylor is not currently involved in the company’s internal crypto discussions.
Gamestop explored previous digital assets through an NFT market place that was launched in July 2022, but scaled back the initiative in early 2024 with reference to “Regulatory uncertainty.” The company also completed its crypto wallet service at the end of 2023 due to similar regulatory problems.
