Co-founded by Ohio Governor candidate Vivek Ramaswamy, Strive Asset Management has urged gaming industry icon Gamestop to invest in Bitcoin, according to a new letter sent to the company on February 24th.
“By becoming the best Bitcoin finance company in the gaming sector, we believe GameStop has an incredible opportunity to change the financial future,” CEO Ryan Cohen wrote Thestreet Crypto I’m writing this in. “With nearly $5 billion in cash on the balance sheet, the company will have its own move of GameStop from memestock to market leaders to one bitcoin at a time, in order to shift reserves from reduced assets to growth engines. It is located in the
GameStop did not respond to Crypto’s request for comment.
But earlier this month, the video gaming giant reportedly was pondering the potential of crypto investments despite having ended the NFT market and crypto wallets in recent years.
That potential shift has attracted the attention of crypto experts who view it as a strategic pivot that can reflect micro-strategy’s Bitcoin accumulation strategy, now known as strategy.
“GameStop’s Bitcoin investment potential can be placed alongside companies such as strategies to recognize Bitcoin as a great financial asset,” Cory Klippsten, CEO of Swan Bitcoin, told ThestReet Crypto. Ta.
“By holding Bitcoin, GameStop will gain exposure to the world’s most performant assets, while insulating itself from the ongoing decline of Fiat,” Klippsten added. Duration of period over traditional financial assets. ”
However, some analysts warn that there are hidden risks in a company’s Bitcoin accumulation. “If they oppose their holdings, as with Michael Saylor’s strategy, they risk cascade margin calls and forced sales,” Nirvana Finance’s Thomas Ruble told Thestreet Crypto. If accumulating Bitcoin is not volatility, it is a systematic vulnerability. ”
Additionally, GameStop’s potential Bitcoin investment includes financial overload on a single asset, volatility in the price of Bitcoin, potential regulatory uncertainty, and cybersecurity threats due to crypto hacks multiplying. There are several risks, such as an increase. Additionally, Texas-based retailers could face accounting and tax challenges and a shift in focus from their core gaming business.
The actual risks are conditional on how GameStop pursues its crypto investment strategy, but others in the industry are optimistic about potential profits. Rachel Lin, CEO of distributed Exchange Synfutures, told ThestReet Crypto.