TLDRGameStop CEO Ryan Cohen confirmed receiving a letter from Strive Asset Management urging Bitcoin investmentStrive CEO Matt Cole recommended using GameStop’s $4.6 billion cash reserves to purchase BitcoinCole suggested issuing new equity and convertible debt securities to fund additional Bitcoin purchasesSwan Bitcoin’s managing director John Haar said this move would surprise traditional finance investorsGameStop previously gained fame during the 2020-2021 meme stock craze that caused losses for Wall Street firmsGameStop, the video game retailer that became famous during the meme stock craze of 2020-2021, is now considering a major move into Bitcoin. On February 26, GameStop CEO Ryan Cohen confirmed on social media platform X that he had received a letter from Strive Asset Management CEO Matt Cole. The letter, dated February 24, urged GameStop to use its $4.6 billion cash reserves to purchase Bitcoin.Letter received.— Ryan Cohen (@ryancohen) February 25, 2025This potential move comes after GameStop’s dramatic rise to prominence during the meme stock phenomenon. Between April 2020 and January 2021, GameStop’s stock price increased by nearly 11,500%, going from just $0.70 to $81.25 according to Google Finance data. This massive price surge was largely driven by retail investors coordinating on Reddit, resulting in a short squeeze that caused heavy losses for Wall Street firms betting against the company.The letter from Strive Asset Management doesn’t just suggest a one-time Bitcoin purchase. Cole recommended that GameStop pursue what he calls a “Leveraged Bitcoin Equity” (LBE) strategy. This would involve not only using existing cash reserves but also raising additional funds through at-the-market offerings and convertible debt securities specifically to buy more Bitcoin.John Haar, managing director of Swan Bitcoin, a Bitcoin-only exchange, commented on the potential move on February 25. In a post on X, Haar stated that if GameStop follows through with this strategy, it “will bake the noodles of so many TradFi investors and commentators who think both GME and Bitcoin are a joke.”If GameStop embarks on the LBE (Leveraged Bitcoin Equity) strategy… It will bake the noodles of so many TradFi investors and commentators who think both #GME and #Bitcoin are a joke pic.twitter.com/kQniYEWIeE— John Haar (@john_at_swan) February 25, 2025The timing of Cole’s letter aligns with earlier reports that GameStop had already been exploring investment in Bitcoin and other alternative asset classes. On February 13, reports emerged suggesting the company was considering diversifying its investment strategy beyond traditional financial instruments.Cole’s letter included several specific recommendations for GameStop beyond just purchasing Bitcoin. He advised the company to close all stores that are currently operating at a loss and to expand its online presence. According to Cole, these operational changes would free up additional capital that could be used to “purchase more Bitcoin.”GameStop’s Bitcoin PivotIn making his case for Bitcoin investment, Cole positioned it as a move that would transform GameStop “from meme stock to market leader.” He described Bitcoin as a “true savings asset” that could protect the company from inflation that affects traditional fiat currencies.An important part of Cole’s recommendation was that GameStop should focus exclusively on Bitcoin rather than exploring other cryptocurrencies. Cole argued that a Bitcoin-only approach would help establish GameStop as a “disciplined, forward-looking organization” while protecting long-term shareholder returns.There are hints that GameStop’s leadership may already be warming to the idea of Bitcoin investment. Recently, Ryan Cohen shared a photo of himself with Michael Saylor, the chairman of Strategy (formerly MicroStrategy). Strategy has become known for its aggressive Bitcoin acquisition strategy and currently holds Bitcoin valued at approximately $44.2 billion.Strategy’s approach to Bitcoin investment has already inspired other public companies. Firms such as Metaplanet and Semler Scientific have adopted similar strategies, using corporate treasury funds to acquire Bitcoin as a reserve asset.For GameStop, this potential move represents a major shift in corporate strategy. The company, which traditionally focused on physical retail sales of video games and related products, has been working to reinvent itself in the digital age as game purchases increasingly move online.A Bitcoin investment of the scale suggested by Strive would place GameStop among the most Bitcoin-friendly public companies in the United States. It would also represent a bold bet on cryptocurrency at a time when Bitcoin’s price has been highly volatile but generally trending upward.The reaction from GameStop shareholders to this potential move remains to be seen. While some investors might welcome the Bitcoin strategy as forward-thinking, others might question whether such a large allocation to a single, volatile asset is prudent for a retailer still working through its business transformation.GameStop has not yet announced a formal decision regarding Bitcoin investment. Ryan Cohen’s acknowledgment of receiving the letter suggests the company is at least considering the proposal, but no timeline for a decision has been provided.The gaming retailer’s potential entry into Bitcoin comes at a time when more mainstream companies are exploring cryptocurrency investments. This trend has accelerated as Bitcoin has gained more acceptance among institutional investors and as concerns about inflation have prompted companies to look for alternatives to holding cash.The post GameStop CEO Ryan Cohen Considers $4.6 Billion Bitcoin Purchase Recommendation appeared first on Blockonomi.