GameStop’s Bitcoin Adventure: Will It Leave TradFi in a Noodle Twist? 🍜💸

Ah, GameStop Corp. (GME), the gaming retailer that has somehow become the poster child for financial chaos! Recently, they received a rather intriguing letter from Strive Asset Management, suggesting they dip their toes into the murky waters of Bitcoin. Apparently, this could send traditional finance investors into a tailspin, or as one crypto exchange executive put it, “blow their minds.” Talk about a financial fireworks show! 🎆

In a post on February 26, GameStop’s CEO, Ryan Cohen, confirmed he had received this letter on February 24 from Strive’s CEO, Matt Cole. The suggestion? Use their hefty $4.6 billion cash pile to buy Bitcoin (BTC) and fund even more purchases through market offerings. Because, you know, why not throw a little more chaos into the mix? 🤷‍♂️

John Haar, the managing director of Swan Bitcoin, chimed in with a delightful metaphor: “If GameStop embarks on the LBE (Leveraged Bitcoin Equity) strategy… It will bake the noodles of so many TradFi investors and commentators who think both GME and Bitcoin are a joke.” I mean, who doesn’t love a good noodle bake? 🍝

Let’s not forget, GameStop was at the heart of the meme stock frenzy of 2020 and 2021, where Reddit users turned Wall Street’s short-sellers into quivering wrecks. GME skyrocketed nearly 11,500% from a measly $0.70 to a staggering $81.25 between April 2020 and January 2021. Google Finance must have been sweating bullets! 📈

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In his letter, Cole recommended that GameStop purchase more Bitcoin by issuing new equity through at-the-market offerings and convertible debt securities. He also suggested they sell or close “all stores operating at a loss.” Because, let’s face it, who wants to keep a losing game going? 🎮

He argued that a Bitcoin treasury would transform GameStop from a meme stock into a market leader, serving as a “true savings asset” to protect against the inflationary pressures that are wreaking havoc on fiat currencies. Sounds like a plan, right? 💰

Cole also advised GameStop to steer clear of other cryptocurrencies, as a Bitcoin-only strategy would bolster their image as a “disciplined, forward-looking organization.” Because nothing says “forward-looking” like a company that’s been through the wringer! 🌀

Recently, Cohen shared a photo with Michael Saylor, the chair of the $44.2 billion Bitcoin-holding firm Strategy, formerly known as MicroStrategy. It’s like a financial power couple, isn’t it? 💑

Strategy’s Bitcoin-buying spree has inspired other public firms, including Metaplanet and Semler Scientific, to jump on the bandwagon. Who knew Bitcoin could be so contagious? 🤒

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2025-02-26 04:09