GameStop-Themed Cryptos Soar After Vivek Ramaswamy Co-Founded Firm's CEO Urges Bitcoin Investment: Graduate From Being 'Meme Stock' To Sector Leader

An investor recommendation urging video game retailer GameStop Corp. (NYSE:GME) to adopt the Bitcoin (CRYPTO: BTC) standard caused cryptocurrencies themed on the company to surge on Tuesday.

What happened: BNB Chain (CRYPTO: BNB)-based GameStop Coin exploded 363% over the last 24 hours to a market capitalization of $3.15 million.

Similarly, Ethereum (CRYPTO: ETH)-based GameStop, with a much higher valuation, rallied over 8%, while its trading volume bounced 46% in the last 24 hours.

It’s worth noting that these meme coins aren't directly tied to GameStop but rather seek to capitalize on the hype surrounding the meme stock.

Benzinga Note: Investing in meme coins and cryptocurrencies is highly speculative and involves significant risk. Meme coins often lack intrinsic value and are driven by market sentiment, social media trends, and speculative trading

The surge came after Matt Cole, CEO of investment firm Strive Asset Management, sent a letter urging GameStop CEO Ryan Cohen to adopt Bitcoin as a Treasury reserve asset. 

Strive, which holds shares of GameStop through its exchange-traded funds, proposed that GameStop utilize its $5 billion-strong cash reserves to invest in Bitcoin, a move that could propel itself “from meme stock to market leader.”

Cohen has acknowledged the letter.

Note that Strive was co-founded by Ohio Governor hopeful Vivek Ramaswamy in early 2022.

See Also: Peter Schiff Questions Michael Saylor-Led Strategy’s Leverage Bitcoin Play Amid MSTR Decline: ‘Massive Dilution Has Destroyed Shareholder Value’

Why It Matters: Speculations about GameStop's foray into Bitcoin investments have soared ever since Cohen posted a picture with Michael Saylor, co-founder of Bitcoin Treasury company Strategy,  on X

GameStop has been one of the most popular retail stocks in recent years, helped by the historic 2021 meme stock craze that saw the stock squeeze higher. Keith Gill, also known as "Roaring Kitty,” has influenced GameStop’s price action through his cryptic posts on X.

Price Action: Shares of GameStop were up 0.16% in after-hours trading after closing 2.32% lower at  $24.42 during Tuesday's regular session , according to data from Benzinga Pro. 

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