GameStop Considers Switching to Bitcoin

Strive Asset Management, which owns a stake in GameStop through its ETFs, sees the company as a promising leader in the gaming industry if it adopts Bitcoin as its primary reserve. With cash assets valued at nearly $5 billion, GameStop has the opportunity to change its strategy by shifting funds from traditional financial instruments to an asset that can drive growth, Cole said.

The company has managed to reduce operating losses over the past two years, offsetting them with interest income from capital raised through the issuance of shares. This helped stabilize GameStop’s balance sheet, but according to Cole, the key issue remains – the decline in popularity of physical stores. Consumers increasingly prefer digital downloads of games and content, which requires a rethink of the business model.

Cole suggested that GameStop use Bitcoin as its main asset for storing capital. He believes that Bitcoin can protect the company from inflation and become a reliable means of preserving value. At the same time, he warned against investing in other cryptocurrencies, which can reduce shareholder value and complicate raising financing in the future.

In addition, the letter contains recommendations for optimizing operating expenses. In particular, Cole suggests that GameStop continue to reduce the network of physical stores, focusing resources on online sales and digital initiatives. To expand its positions in Bitcoin, he also recommends using capital market mechanisms, including the placement of ATM shares and the issuance of convertible debt instruments.

Thus, Strive Asset Management sees Bitcoin not just as a financial asset, but as a strategic tool that can transform GameStop and ensure its sustainable growth in the long term.