By [Your Name] | March 29, 2025
Shares of GameStop Corp. (NYSE: GME) took a major hit on Thursday, plunging 22% in a single day and marking a 26% decline from its recent 10-week high of $28.36. The video game retailer’s stock initially surged earlier in the week after revealing its decision to adopt Bitcoin (BTC) as a treasury reserve asset, but the enthusiasm quickly faded.
Renowned economist and long-time Bitcoin critic Peter Schiff didn’t hold back, slamming GameStop’s strategy as “foolish” and unsustainable.
Bitcoin Play Sends Shares Tumbling
GameStop’s announcement of adding Bitcoin to its balance sheet triggered a brief rally, with the stock hitting its highest level in over two months. However, the sentiment reversed sharply after the company revealed a convertible debt offering to fund its BTC purchases.
The market interpreted this move as dilutive, raising concerns that existing shareholders would see their ownership stakes reduced. As a result, many investors cashed out, sending the stock into freefall.
Peter Schiff: “Fools Rushed In, Smarter Investors Cashed Out”
Peter Schiff took to X (formerly Twitter) to weigh in on the situation. Known for his anti-Bitcoin stance, Schiff ridiculed GameStop’s Bitcoin investment, labeling it a “Hail Mary” attempt to stay relevant.
“GME is now getting crushed. It’s down 22% on the day and 26% from yesterday’s high,” Schiff wrote. He didn’t mince words when addressing investors who had bought into the hype, calling them “fools” and praising those who exited quickly.
“Now that all the fools have already rushed in, smarter investors are selling as they realize that wasting cash buying Bitcoin is not a viable long-term business model,” he added.
GameStop Following MicroStrategy’s Path
GameStop’s decision to allocate treasury reserves into Bitcoin mirrors the approach of MicroStrategy, the world’s largest corporate holder of BTC. MicroStrategy, led by Michael Saylor, holds over $43 billion worth of Bitcoin as of this writing, according to Bitcoin Treasuries.
However, while MicroStrategy has seen substantial gains from its Bitcoin strategy, investors appear less confident in GameStop’s ability to replicate that success. The fear of dilution from the debt offering and the potential volatility of crypto markets have weighed heavily on GME shares.
Why It Matters: GameStop’s Gamble Divides Investors
GameStop’s Bitcoin move highlights a growing trend among public companies seeking to diversify their assets with crypto. However, critics argue that using cash reserves to purchase a highly volatile asset introduces unnecessary risk, especially for a company already facing challenges in its core business.
Investors seem split on the move. While crypto enthusiasts view it as a bold, forward-thinking strategy, traditional investors, like Schiff, see it as financial recklessness.
GameStop’s Future: A Risky Bet on Bitcoin
Despite the sharp drop, GameStop’s Bitcoin strategy could still pay off if BTC continues to appreciate. However, the company’s reliance on debt financing to acquire Bitcoin has left many shareholders uneasy, fearing long-term dilution.
For now, GME shares remain volatile, and the stock’s future will likely depend on Bitcoin’s performance and whether GameStop can convince investors that its crypto bet is a calculated risk rather than a desperate gamble.
