Strive Asset Management has called on Gamestop to assign a significant part of his $ 5 billion cash reserves to Bitcoin.
In a February 24 letterStrive CEO Matt Cole outlined how Bitcoin’s adoption could reform the financial strategy and market position of the Gaming retailer.
Cole emphasized that holding Bitcoin could set up as a treasury asset gamestop as the market leader in the game sector. He argued that shifting reserves from depreciating cash to Bitcoin would transform the financial process of the company.
He also noted that this step could increase the shares of Gamestop from a actual market leader with a long -term shareholder value driven by Vitrage.
He concluded:
“We are firmly convinced that embracing Bitcoin as your obstacle for capital
Implementation and your most important treasury-in-activa-in while focusing on digital channels and consolidating under-performing retail activities, position gamestop to become a pioneer in the industry and a best performing investment. “
[Editor’s Note: There remains a significant number of GameStop shareholders who “like the stock” and believe the Mother Of All Short Squeezes (MOASS) is yet to come. Investing in a hard asset like Bitcoin could be a novel method to force any remaining short sellers to finally give up.]
Why Bitcoin?
In the letter, Strive Detaded would be different reasons Bitcoin is a strategic choice for the treasury of Gamestop, pointing out that keeping cash in the current economic climate is a losing strategy due to inflation and monetary expansion.
The company promoted that Bitcoin is a cover against depreciation and an active with increasing institutional demand.
Strive explained:
“With its decentralized structure, limited delivery and increasing mainstream acceptance, Bitcoin can serve as a truly saving active in the long term and protect the company against inflectional pressure that affects Fiat -Malutas.”
Furthermore, Strive suggested that Bitcoin would be a strong basis for the future financial health of GameStop, especially because the gaming industry continues to digital spaces.
In the meantime, Strive also insisted on Gamestop to concentrate exclusively on Bitcoin, warning against diversification in other cryptocurrencies.
The company mentioned Bitcoin’s reputation as “digital gold” and the only crypto assets with widespread institutional acceptance. It also pointed to Gamestop’s earlier failed companies in NFTS and Crypto portfolios as reasons for maintaining a targeted approach in the best crypto.
Financing mechanisms
In addition to the use of his cash reserves for Bitcoin acquisitions, Strive recommended capital markets to increase the companies.
The company proposed an on the market (ATM) offer and convertible debts to guarantee liquidity for further Bitcoin purchases.
According to Strive, these methods could offer GameStop the necessary capital to settle as a leader in the digital assets space.
It added:
“As soon as Gamestop acquires a Bitcoin war box, try to implement it in the future for strategic growth initiatives and mergers and takeovers in the gaming sector when the long-term expected return is simply greater than Bitcoin.”
