Based on recommendations from Strive Asset Management GameStop should invest its $5 billion cash reserves to purchase significant amounts of Bitcoin. In his recent letter the company lead Matt Cole introduced business approaches which would enhance GameStop’s financial stability and market influence.
GameStop’s goal is to improve its financial results through investing in Bitcoin rather than holding cash which is at risk of depreciation over time. The move would raise its position from speculative stock to industry leader.
Why Bitcoin Makes Sense
The company identifies Bitcoin as a strategic asset because of various business advantages. The current economic conditions lead to cash owners experiencing decreased value due to inflationary effects. Bitcoin works as protection against currency depreciation because institutional demand keeps increasing.
Bitcoin-Only Approach
It is important to note that GameStop’s interest is exclusively on Bitcoin as it is perceived as the most established digital assets compared to other cryptocurrencies. According to Strive GameStop should focus on Bitcoin because of its status as “digital gold” and its popularity among institutions. The company made this suggestion because GameStop had previously failed to succeed with NFT ventures.
Funding the Strategy
Allocating potential existing cash from GameStop’s fund reserve into debt securities in order to increase its Bitcoin investments allocation was a financial advice recommended by Strive. This strategy would enable Gamestop to enter the digital asset industry and gain capital market dominance
Bitcoin as a Treasury Solution
GameStop would transform into an industry-leading investment and top-performing company. This will be done through Bitcoin adoption as treasury asset and optimized digital operations and reduced retail locations. MOASS believers predict that implementing Bitcoin as a solution would make short sellers end their activities.
