Matt Cole, CEO of Strive Asset Management – An investment company co -founded by Vivek Ramaswamy – exhorted Gamesop to adopt Bitcoin as a reserve asset.
Cole sent a letter to Ryan Cohen, president and chief executive officer of GameStop (GME), on February 24. According to Cole, Gamesop has a unique opportunity to redefine as a market leader with its cash reserve of almost $ 5 billion.
“We believe that Gamesop has an incredible opportunity to transform its financial future by becoming the first Bitcoin cash company in the game sector.”
According to the letter, Strive customers hold Gamesop actions through the funds exchanged in asset management (ETF), giving the company “a fiduciary responsibility and an acquired interest” in the success of Gamesop. Cole said that his business has the GME stock in three different ETFs without disclosing the amount.
The letter comes after reports have surfaced earlier this month on GameStop planning to invest in alternative investments, including bitcoin and cryptocurrencies.
Over the past two years, Gamestop has reduced its operating losses and has managed to compensate for these deficits through interest income from cash holdings generated by share offers, according to the letter. These initiatives stabilized the assessment of GME and positioned the company for “dynamic strategic movements”, adds the letter.
Cole maintains that Bitcoin will be the new “obstacle rate” for the deployment of capital. The letter also maintains that Cash is a real negative return; Bitcoin is considered to be an inflation coverage in terms of monetary exceeding. The CEO of Strive suggests that GameStop should focus on bitcoin and avoid other cryptocurrencies while taking advantage of capital markets to issue installation offers (ATM) and convertible debt titles.
The suggestion of the letter reflects what several other companies, including Microstrategy, Semler Scientific and Mara Holdings, are already deployed. Most of the greater capitalization actions that bought Bitcoin on the free market have seen not only their share rally rally, but also opened new paths for capital increases.
The letter ends with an applauding GAMESTOP Cole for the closure of non -profitable stores and the publicly rejection of diversity, equity and inclusion programs (DEI).
Cole says: “We applaud the leadership that your business has already taken to close many non -profitable stores and publicly reject Dei.”
