GameStop Q4 Earnings Preview: Will Video Game Retailer Unveil Bitcoin Purchase?

As gamestop prepares to release its Q4 earnings, the retail sector is abuzz with speculation about the company's potential pivot into Bitcoin. The video game retailer, which has seen its fair share of ups and downs, is now at a crossroads. Will it continue to focus on its traditional brick-and-mortar model, or will it embrace the digital revolution by investing in cryptocurrency? The answer could significantly impact GameStop's financial stability and long-term growth prospects.

GameStop's journey has been nothing short of tumultuous. From its meteoric rise as a meme stock to its struggles with adapting to the digital age, the company has faced numerous challenges. However, recent developments suggest that GameStop might be on the verge of a transformative move. A proposal from Strive Asset Management recommends that GameStop convert nearly $5 billion in cash reserves into Bitcoin, positioning itself as the "premier Bitcoin treasury company in the gaming sector."



The proposal, dated February 24 and signed by Strive CEO Matt Cole, was acknowledged by GameStop Chairman and CEO Ryan Cohen, who posted "Letter received" on social media on Tuesday without elaborating further. GameStop has not publicly commented on whether it will consider Strive’s proposal. The company did not immediately respond to Decrypt’s request for comment.

Strive, an investment firm co-founded by Vivek Ramaswamy, a former U.S. presidential candidate, has positioned itself as an advocate for corporate strategies that prioritize shareholder value over environmental, social, and governance considerations. The letter argues that Bitcoin is a superior alternative to holding cash, which it describes as a “shrinking asset” due to inflation. It points to recent accounting rule changes allowing companies to recognize unrealized Bitcoin gains as profit, making it a more attractive corporate treasury asset.

The firm also urged GameStop to avoid investing in other cryptos, calling Bitcoin the only “true store of value” among digital assets. It warned that speculative investments in alternative tokens could undermine financial stability and cited GameStop’s failed NFT marketplace as an example of the risks of expanding into unproven digital assets.

Strive’s proposal also called for a reduction in GameStop’s retail footprint, applauding its exit from Canada, France, and Germany while recommending further store closures as the industry shifts toward digital game sales. It suggested that the company focus on e-commerce and AI-driven services rather than maintaining unprofitable physical locations. To fund Bitcoin purchases, Strive proposed that GameStop raise additional capital through at-the-market stock offerings and convertible debt securities, arguing that its high trading volume makes such moves viable.

The proposal comes as Bitcoin trades below $89,000, down from a peak of over $109,000 in January. The broader crypto market has faced heightened volatility, with a $1.5 billion hack on exchange Bybit adding to uncertainty. Cohen has remained largely silent on the company’s long-term strategy but has previously indicated a shift toward a leaner model, focusing on “value-added” items.

Earlier this month, the CEO posted an untitled picture standing next to Strategy CEO Michael Saylor, further adding to speculation Cohen is mulling Bitcoin as a viable investment. The company’s stock, which remains popular among retail traders, closed 2.36% down on the day to $24.32 and remains little changed in after-hours trading.



GameStop's potential investment in Bitcoin could have significant implications for its financial stability and long-term growth prospects, given the volatility of the cryptocurrency market. According to a proposal from Strive Asset Management, GameStop could convert nearly $5 billion in cash reserves into Bitcoin, positioning itself as the "premier Bitcoin treasury company in the gaming sector." This move is seen as a way to transform the company's financial future by leveraging Bitcoin's scarcity and increasing institutional adoption as a long-term hedge against inflation and a strategic reserve asset.

However, the cryptocurrency market is known for its volatility. For instance, Bitcoin's price has fluctuated significantly, trading below $89,000 in March 2025, down from a peak of over $109,000 in January 2025. This volatility could expose GameStop to substantial financial risks. The broader crypto market has also faced heightened volatility, with a $1.5 billion hack on exchange Bybit adding to uncertainty. Such events could negatively impact GameStop's financial stability if it were to hold a significant portion of its assets in Bitcoin.

On the other hand, Bitcoin's potential as a store of value and a hedge against inflation could benefit GameStop in the long term. Strive Asset Management argues that Bitcoin is a superior alternative to holding cash, which it describes as a “shrinking asset” due to inflation. Recent accounting rule changes allowing companies to recognize unrealized Bitcoin gains as profit make it a more attractive corporate treasury asset. This could potentially enhance GameStop's financial stability by providing a more robust return on its cash reserves.

Moreover, GameStop's CEO Ryan Cohen has indicated a shift toward a leaner model, focusing on “value-added” items. This strategic direction, combined with a potential investment in Bitcoin, could position GameStop as a forward-looking company that prioritizes shareholder value. However, the company must carefully manage the risks associated with cryptocurrency volatility to ensure long-term growth and financial stability.

Converting its cash reserves into Bitcoin could provide GameStop with several strategic advantages. Firstly, Bitcoin is considered a superior alternative to holding cash due to its potential to act as a hedge against inflation. As Strive Asset Management's proposal states, "Bitcoin is a superior alternative to holding cash, which it describes as a ‘shrinking asset’ due to inflation." This means that by holding Bitcoin, GameStop could protect its cash reserves from losing value over time due to inflation.

Secondly, converting cash reserves into Bitcoin could position GameStop as a leader in the gaming sector. Strive Asset Management's proposal suggests that GameStop could become the "premier Bitcoin treasury company in the gaming sector" by making this move. This could enhance GameStop's brand image and attract investors who are interested in companies that hold Bitcoin.

Thirdly, Bitcoin's scarcity and increasing institutional adoption position it as a long-term hedge against inflation and a strategic reserve asset. As the proposal mentions, "Bitcoin’s scarcity and increasing institutional adoption position it as a long-term hedge against inflation and a strategic reserve asset." This means that by holding Bitcoin, GameStop could benefit from its long-term appreciation in value.

However, this decision could also influence GameStop's competitive position in the video game retail sector. By converting its cash reserves into Bitcoin, GameStop could signal to its competitors that it is forward-thinking and innovative. This could help GameStop to differentiate itself from other video game retailers and attract customers who are interested in companies that are at the forefront of technological innovation.

Moreover, GameStop could use the proceeds from selling Bitcoin to fund its operations and investments. As the proposal suggests, "To fund Bitcoin purchases, Strive proposed that GameStop raise additional capital through at-the-market stock offerings and convertible debt securities, arguing that its high trading volume makes such moves viable." This means that GameStop could use the proceeds from selling Bitcoin to fund its operations and investments, which could help it to compete more effectively in the video game retail sector.

In summary, converting its cash reserves into Bitcoin could provide GameStop with several strategic advantages, including protecting its cash reserves from inflation, enhancing its brand image, and positioning itself as a leader in the gaming sector. However, this decision could also influence GameStop's competitive position in the video game retail sector by signaling to its competitors that it is forward-thinking and innovative, and by providing it with additional capital to fund its operations and investments.

Ask Aime: Will GameStop pivot into Bitcoin or continue its traditional retail model?