GameStop Urged to Buy Bitcoin: Could It Spark the Next Big Market Frenzy?

GameStop (GME), the gaming retailer at the heart of the 2021 meme stock revolution, has received a striking proposal from Strive Asset Management: use its $4.6 billion cash reserves to buy Bitcoin. GameStop CEO Ryan Cohen confirmed on Feb. 26 that he had acknowledged a letter from Strive’s CEO, Matt Cole, suggesting the retailer not only invest in Bitcoin but also leverage market offerings to fund additional BTC purchases.

“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,” said John Haar, managing director at Swan Bitcoin, in a recent post on X.

GameStop is no stranger to financial disruption. During the 2021 short squeeze, fueled by retail traders from Reddit’s WallStreetBets, GME surged an astronomical 11,500%—jumping from $0.70 in April 2020 to $81.25 by January 2021. Now, with Bitcoin’s institutional adoption growing, a BTC treasury strategy could ignite another wave of market excitement.

Gamestop: Transforming From a Mere Meme Stock

Cole’s letter lays out an aggressive plan to reshape GameStop’s financial strategy. He advised the company to issue new equity through at-the-market offerings and convertible debt securities to acquire more Bitcoin. Additionally, he recommended shutting down unprofitable stores while strengthening GameStop’s online business to further fund BTC accumulation.

A move into Bitcoin, according to Cole, would position GameStop as a “market leader” rather than a speculative meme stock. He argued that Bitcoin is a “true savings asset” that could protect the company from inflation, unlike fiat reserves that continuously lose purchasing power.

Cole also urged GameStop to adopt a strict Bitcoin-only approach, steering clear of altcoins. This, he argued, would enhance the company’s reputation as a “disciplined, forward-looking organization” and provide long-term benefits to shareholders.

A Strategic Shift in the Making?

GameStop’s Cohen has remained relatively quiet on the matter but recently shared a photo with Michael Saylor, the chairman of Strategy, formerly MicroStrategy. Saylor’s firm, known for holding $44.2 billion in Bitcoin, has set a precedent for corporate BTC adoption.

Companies like Metaplanet and Semler Scientific have already followed Strategy’s Bitcoin-buying model. If GameStop joins the ranks, it could once again become the epicenter of a major movement.