Ryan Cohen, the CEO of gaming firm turned memestock GameStop, just acknowledged the proposal for the company to invest in Bitcoin (BTC).
Cohen simply wrote “Letter Received” in a recent X post answering a report concerning Strive Asset Management CEO Matt Cole urging GameStop to invest part of its $5 billion worth of cash into the world’s first cryptocurrency Bitcoin. The report cites a letter to GameStop in which Cole notes that “GameStop has an incredible opportunity to transform its financial future by
becoming the premier Bitcoin treasury company in the gaming sector.” He also wrote:
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector.”
The details
In the letter, Cole notes that Strive’s clients hold GameStop through exchange-traded funds (ETFs) which results in the firm having “a fiduciary responsibility and vested interest” in GameStop’s success. He noted that the company is exposed to the gaming company’s stock through three separate ETFs in undisclosed amounts.
The letter further claims that Bitcoin is a superior alternative to holding on to cash, citing inflation and describing the latter as a “shrinking asset.” Cole also points to recent rule changes that allow companies to point to unrealized Bitcoin gains as profit, which makes holding it on a balance sheet even more attractive.
The news follows recent reports that GameStop is reportedly already considering adding Bitcoin to its balance sheet. Reports cited anonymous sources making the claim, resulting in the company’s shares jumping up by 20% following the rumor making its way to the media.
The report did not come as a complete surprise, considering that some past events suggested that such a measure may be coming. GameStop CEO Ryan Cohen recently posted a photo with Strategy co-founder and chairman Michael Saylor.
Saylor is a world-renowned Bitcoin evangelist who previously attempted to sell the idea of holding BTC on corporate balance sheets to the Microsoft Board. The initiative later failed, with similar proposals for investing 5% of company capital being floated at Amazon.
