By Guest 
In a move that could send shockwaves through traditional financial markets, Swan Bitcoin’s CEO, Cory Klippsten, has suggested that if GameStop (GME) were to invest its $4.6 billion in cash reserves into Bitcoin and commit to further purchases, it would create a significant stir in the market.
GameStop Considers Investing in Bitcoin
According to a report by CoinTelegraph, GameStop has responded to a letter from Strive Asset Management, which urged the company to invest in Bitcoin. The proposal, which was made by Matt Cole, the CEO of Strive, suggests that GameStop should allocate its $4.6 billion in cash reserves to purchase Bitcoin and raise additional funds through capital markets to buy more.
Ryan Cohen, the CEO of GameStop, confirmed on February 26 via a post on the social media platform X that he had received a letter from Matt Cole. In the letter, Cole proposed that GameStop should not only buy Bitcoin but also issue new shares and use convertible debt to raise funds for additional Bitcoin purchases. He also recommended that the company close unprofitable stores and focus on enhancing its online presence to free up capital for Bitcoin investments.
Potential Market Impact
John Harr, the CEO of Swan Bitcoin, commented on February 25 that if GameStop were to adopt a “Leveraged Bitcoin Equity” (LBE) strategy, it would shock many traditional investors and financial analysts who view both GameStop and Bitcoin as jokes.
GameStop was at the center of the meme stock movement in 2020 and 2021, when Reddit users executed a short squeeze strategy on the stock, causing significant losses for Wall Street firms that had short positions on GME. Data shows that GameStop’s stock price soared by nearly 11,500% between April 2020 and January 2021, rising from $0.70 to $81.25.
Strategic Recommendations and Long-Term Vision
Cole’s letter, sent after a February 13 report indicating that GameStop was exploring investments in Bitcoin and other alternative assets, advises the company to issue new shares and use convertible debt to buy more Bitcoin. He also suggests that GameStop should close unprofitable stores and focus on expanding its online presence to generate the necessary capital for Bitcoin investments.
Cole believes that holding Bitcoin in its treasury could transform GameStop from a meme stock into a market leader. Additionally, by preserving the company’s asset value against fiat currency inflation, Bitcoin could serve as a true store of value.
Cole has also warned against investing in other cryptocurrencies, arguing that focusing on Bitcoin would enhance GameStop’s image as a disciplined and forward-thinking organization, ultimately benefiting shareholders in the long run.
Broader Implications and Inspirations
Ryan Cohen recently shared a photo with Michael Saylor, the CEO of MicroStrategy (now known as Strategy), a company that has invested $4.42 billion in Bitcoin. MicroStrategy’s Bitcoin investment strategy has inspired other public companies, such as Metaplanet and Semler Scientific, to adopt similar approaches.
This potential move by GameStop highlights the growing trend of companies considering Bitcoin as a strategic asset, potentially reshaping the landscape of traditional finance and investing.