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GameStop CEO Ryan Cohen on Tuesday confirmed that he had obtained a letter from Matt Cole, CEO of Try Asset Administration, during which Cole proposed the corporate use its money reserves to spend money on Bitcoin.

The online game retailer held roughly $4.6 billion in money piles on the finish of the third quarter of 2024, in accordance with a December SEC disclosure.

Cole despatched the letter to Cohen on Feb. 24, stating that GameStop has a novel alternative to rework itself by turning into the premier Bitcoin treasury firm within the gaming trade.

“We imagine this shift can elevate $GME from “meme inventory” to gaming-sector chief, driving long-run worth for shareholders—together with our purchasers who maintain GameStop by means of our ETFs,” Cole wrote on X.

He argues that Bitcoin will develop into the brand new “hurdle price” for capital deployment, suggesting money gives unfavorable actual returns whereas Bitcoin serves as an inflation hedge.

The proposal recommends GameStop focus completely on Bitcoin whereas avoiding different crypto property, and leverage capital markets by means of at-the-market choices and convertible debt securities.

Try Asset Administration, co-founded by Vivek Ramaswamy, just lately launched the Try Bitcoin Bond ETF, an funding product designed to offer traders with publicity to Bitcoin by means of convertible securities, primarily related to MicroStrategy’s holdings.

The ETF will make investments primarily in Bitcoin bonds and different derivatives similar to swaps and choices, specializing in direct and by-product positions in Bitcoin-linked securities. It’s going to additionally maintain money in US Treasury securities and probably spend money on different Bitcoin-focused monetary devices.

GameStop explores Bitcoin funding amid retail struggles

The proposal follows a current CNBC report that GameStop is contemplating including Bitcoin and different digital property to its funding portfolio.

“We acknowledge GameStop is exploring the right way to embrace this chance, and we imagine execution will likely be crucial for long-term success. That’s why we engaged instantly—to encourage not solely daring motion but additionally a transparent dedication to Bitcoin solely,” Try CEO famous.

The exploration of crypto investments comes as GameStop faces declining gross sales, with a 20% drop reported in Q3 2024 throughout each {hardware} and software program segments. The corporate’s conventional brick-and-mortar enterprise continues to face challenges as digital sport downloads achieve reputation.

GameStop’s board authorised a revised funding coverage in January, granting CEO Cohen and his crew expanded authority to spend money on equities and different property.

CEO Cohen additionally met with Technique’s co-founder Michael Saylor shortly earlier than the report, although sources indicated Saylor will not be at present concerned within the firm’s inside crypto discussions.

GameStop beforehand explored digital property by means of an NFT market launched in July 2022, however scaled again the initiative in early 2024 citing “regulatory uncertainty.” The corporate additionally ended its crypto pockets service in late 2023 as a result of related regulatory issues.

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