So I was looking at the tweet about the letter today and just got curious about who these guys are, what skin is actually in the game and what even is the purpose of the letter?
Regarding the letter itself, there's nothing really "new" being suggested that isn't already being done. The letter really just points out how Gamestop reduced its operating losses and stabilized its balance sheet. How it's closing its store foot print and moving on from brick and mortar. Then also stating that they were aware gamestop was considering bitcoin purchases.
The letter goes on to suggest buying bitcoin, a thing according to the same letter was already being considered.
Now their claim is that they own Gamestop through their ETF's which give their clients exposure to GME. Well do they? So a small degree. An ETF of theirs STXM exists which owns the following:
They own a whopping $31,229.41 worth of GME. Not really alot right? So whats the angle here??
Well I did some digging on the CEO/author of the letter Matt Cole and quickly found this guy also posting and making a suggestion that microsoft should ALSO put bitcoin on their balance sheet via a video on a popular job website whereby I dont know if that link is allowed.
On x, they wrote a post saying they sent Gamestop a letter urging them to adopt bitcoin. The post ended with "At Strive, we’re committed to working with the companies our clients own in our ETFs to foster forward-looking strategies that unlock genuine long-term potential. Our proposal to GameStop is the first of many focused on making Bitcoin a key treasury asset."
So all I'm confused on is if this is the first of many proposals to Gamestop? Or first of many proposals to other companies? I'm not really sure. Apparently there is a New York bitcoin investor week event the guy is speaking at which runs from Feb 24-28. The guy tldr just seems all about bitcoin and nothing else. While stumbling around for information, I found this:
This is from a news article back in November. Whats interesting is that later on, this strive is actually referred to as "Strive Enterprises" and not Strive Asset Management. I'm about 92% certain this is them:
https://www.sec.gov/Archives/edgar/data/1955745/000095010324010532/xslFormDX01/primary_doc.xml
The same filing but from 2 years ago:
https://www.sec.gov/Archives/edgar/data/1955745/000195574522000001/xslFormDX01/primary_doc.xml
So tldr what I dont know if there is some other means of exposure currently held in GME. Or why particularly GME would be called out for this task of owning bitcoin. So I hit a brick wall. Then I saw this on X:
Of the 659 people Saylor follows, theres this guy and our guy RC:
Thus I can only conclude that perhaps all these parties have already been talking, or know someone who knows a mutual party or something like this. There's no real direct link at all through GME ownership from Matt Cole. Just potential mutual acquaintances that seem to spill the tea at bitcoin conferences.
But why do this letter in the first place? I personally think publicity. When you discuss anything GME or get a response out of Cohen's x account, it always hits headlines and people see the news. Its the best free advertisement strategy of all time.
I will say that for some time, I have thought RC could just adopt the strategy Saylor is doing, and it would be a successful move long term. It would be an interesting thing to see play out, but I don't really believe 100% full port is the move either. Interestingly while looking into strive, I found they were trying to launch a bitcoin bond etf. What is it? Its exactly this apparently:
In the letter, they did mention this:
"Convertible debt securities: Such instruments offer upfront liquidity and can align investor incentives by providing an option to convert debt into equity. This approach can be particularly appealing for a company with a compelling narrative and stock volatility like GameStop on the Bitcoin Standard. Employing convertible debt would allow the firm to receive an additional premium from its stock’s volatility, which could be further enhanced by owning Bitcoin. However, the presence of any purely speculative cryptocurrencies on the balance sheet would make accessing this attractive financing more difficult."
This is exactly what Saylor JUST did:
Now apparently, the US convertible bond is $300 billion large. So its not as though there isn't a market for this type of strategy. I did find a really good article explaining all of this out which tldr says that the gains from convertible bonds offer sometimes multiple double digit gains vs your traditional bons returning significantly less. https://www.morningstar.com/news/marketwatch/20250115246/why-investors-are-lending-microstrategy-billions-of-dollars-at-0-interest-so-it-can-buy-bitcoin
So thats all I got. Will RC dip in the ol toe to test the waters? Is the timing of all this around some declines in bitcoin coincidental? Might they even just go the convertible bond route? Is GME just one company of many being solicited to join some bitcoin revolution where all these random companies join up in some avengers esque movement to all get rich together? What stake does Matt Cole's clients REALLY have in GME aside from the whopping $31,000 in some mid cap ETF of theirs? I dunno, that's all I could find out for now. I'm sure more will become clear as time goes on. Cheers
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