Popular Bitcoin critic Peter Schiff has condemned GameStop for its Bitcoin investment after the American video game retailer saw its stock plummet by over 2%.
GameStop’s recent decision to raise a convertible debt offering to fund future Bitcoin purchases has received mixed reactions from the crypto community. While the move has gained notable support from investors, Peter Schiff has led the criticism.
In a recent X post, Schiff expressed his belief that the 15% surge in GME’s price over the last day was influenced by buzz around the company’s Bitcoin strategy.
According to him, the hype over GameStop’s Bitcoin pivot triggered FOMO-driven buying, leading to a temporary price spike. However, as the firm lost its “Bitcoin-inspired 15% gain” for the day, Schiff claimed that investors who do not see Bitcoin as a viable long-term investment have begun to sell. He labeled those selling their $GME as “smart.”
Schiff also described Bitcoin’s institutional investors as gamblers, blaming GameStop’s recurring stock dips on Bitcoin.
GME is now getting crushed. It’s down 22% on the day, down 26% from yesterday’s high. Gabling on companies buying Bitcoin is not a good investment strategy.
Schiff’s criticism of GameStop’s Bitcoin adoption has received mixed reactions. While some commenters agreed with his stance, others questioned his expertise. One X user accused Schiff of posting anti-crypto takes solely to farm engagement, rather than out of genuine belief.
Meanwhile, other comments expressed bullish sentiment toward GameStop’s potential, despite recent declines. According to CoinMarketCap, GME’s price has dropped 6.68% over the past week as of March 27th.
GameStop imitates MicroStrategy’s business model
GameStop’s Bitcoin adoption plan has gained support not only from crypto enthusiasts but also from institutional investors who have followed a similar strategy—most notably, MicroStrategy.
According to a U.Today report, MicroStrategy’s Michael Saylor has encouraged GameStop to double down on Bitcoin. The investment firm founder is particularly interested in how much Bitcoin GameStop will buy to earn the community’s respect.
Many investors remain optimistic about GameStop’s future, expecting the company to perform similarly to MicroStrategy after adopting a comparable business model.
