GameStop Advised to Invest $5 Billion in Bitcoin (BTC), What’s the Strategy?

Jakarta, Pintu News – GameStop, the video game retail giant, has just received a surprising proposal from Strive Asset Management recommending converting nearly $5 billion of its cash reserves to Bitcoin (BTC).

The move is said to make GameStop the largest “Bitcoin treasury” company in the gaming industry. GameStop’s CEO, Ryan Cohen, confirmed receipt of the proposal through a social media post, though has yet to provide an official response.

This recommendation comes amid high crypto market volatility. Bitcoin (BTC) is currently trading below $89,000, down from a peak of $109,000 last January.

Check out the full news below!

Why is Strive Encouraging GameStop to Switch to Bitcoin (BTC)?

In its proposal, Strive Asset Management argues that Bitcoin (BTC) is superior to holding cash constantly eroded by inflation.

They argue that the new accounting rules allow companies to recognise gains from Bitcoin’s rising price as profit, making it an attractive strategic reserve asset.

Moreover, Strive emphasizes that only Bitcoin is worth considering as a true store of value, rejecting other alternatives such as Ethereum (ETH) or other crypto assets.

They even called the failure of the NFT GameStop marketplace proof that investing in digital assets other than Bitcoin can be unstable and high-risk.

Also read: US Senator Proposes Crypto ATM Regulation, Bitcoin (BTC) Fraud on the Rise?

New Strategy: Reduction of Physical Stores and Focus on AI and E-Commerce

In addition to encouraging heavy investment in Bitcoin (BTC), Strive recommended that GameStop cut back on its physical store operations.

They praised GameStop’s decision to exit the Canadian, French, and German markets and suggested closing more stores to offset the gaming industry’s shift towards digital.

Instead, Strive suggests that GameStop should focus more on e-commerce and artificial intelligence (AI)-based services to improve its competitiveness.

According to Strive, reducing the presence of unprofitable physical stores can help companies improve efficiency and profitability while freeing up capital to allocate to more promising assets such as Bitcoin (BTC).

Read also: Ripple Price Drops 2.63% Today (2/27/25), Is There Significant Selling Pressure?

How Will GameStop Fund Its Huge Investment in Bitcoin (BTC)?

According to Decrypt, to realize this grand plan, Strive proposes that GameStop raise additional funds through the issuance of new shares on the open market and convertible debentures.

They believe that the high trading volume of GameStop shares will support this strategy, allowing the company to secure capital efficiently.

With the increasing adoption of Bitcoin by large institutions, Strive believes that GameStop can pioneer the gaming industry by adopting Bitcoin as a corporate reserve.

They also see Bitcoin as a long-term hedge against inflation, as the limited supply of Bitcoin is increasingly attracting institutional investors.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Decrypt. GameStop CEO Responds to Proposal to Convert $5 Billion Cash to Bitcoin. Accessed February 27, 2025.
• Featured Image: Coin Journal