GameStop faces $5B Bitcoin investment proposal

GameStop Corp. (GME) is facing calls to invest a significant portion of its cash reserves in Bitcoin (CRYPTO:BTC), a move that could reshape its financial strategy.

Strive Asset Management CEO Matt Cole has urged GameStop CEO Ryan Cohen to convert a large part of the company's nearly $5 billion cash reserve into Bitcoin.

Strive, which holds GameStop shares through its ETFs, argues that such a shift could position the retailer as a leading Bitcoin treasury company within the gaming sector.

Cole suggested that GameStop could use at-the-market (ATM) offerings and convertible debt securities to raise capital for Bitcoin purchases.

He also recommended closing unprofitable stores and expanding online operations to free up capital for further investments.

According to Cole, this strategy would safeguard GameStop’s reserves against inflation and monetary debasement.

Speculation over a possible Bitcoin investment intensified after Cohen posted a photo with Michael Saylor, chairman of Strategy, a company known for holding large Bitcoin reserves.

Reports indicate GameStop is exploring investments in alternative assets, including Bitcoin, though no final decision has been made.

Following these developments, GameStop shares surged 20% in after-hours trading before closing 2.32% lower at $24.42 during Tuesday's session.

Cole emphasised that GameStop should focus solely on Bitcoin, avoiding other cryptocurrencies to maintain a disciplined investment strategy.

He believes adopting a Bitcoin-centered treasury strategy could help GameStop move beyond "meme stock" status and build long-term shareholder value.

At the time of reporting, the Bitcoin (BTC) price was $88,760.27.