GameStop Buying Bitcoin Is A 'Hail Mary' From A Company With 'No Viable Business Plan': Peter Schiff

Even as GameStop's GME stock surged on reports that the company is considering investing in Bitcoin BTC/USD, economist Peter Schiff sees the move as a desperate attempt to stay relevant.

What Happened: Schiff, a long-time Bitcoin critic, said on Thursday on X that while GameStop has no viable business model, the irony is that Bitcoin itself is even more overpriced than the video game retailer's stock.

GameStop, which has struggled to maintain consistent profitability, saw its shares rise 8.6% in pre-market trading Friday after reports surfaced that the company is exploring Bitcoin and other cryptocurrency investments.

CNBC reported that GameStop is still evaluating whether such a move aligns with its business strategy, and no final decision has been made.

Despite the uncertainty, the stock jumped as much as 20% in extended trading as speculators reacted to the news.

The potential shift into crypto comes after years of speculation that the company might integrate digital assets into its strategy.

In 2022, GameStop launched a crypto wallet for handling cryptocurrencies and NFTs, but the service was discontinued in 2023 due to regulatory concerns.

Under CEO Ryan Cohen, the company has focused on cost-cutting and optimizing operations to maintain stability.

According to a December securities filing, GameStop had $4.6 billion in cash reserves as of Nov. 2, funds that Cohen has been leveraging for investments.

Schiff likened GameStop's possible crypto investment to a “Hail Mary” play, comparing it to MicroStrategy‘s MSTR aggressive Bitcoin strategy led by Michael Saylor.

According to Schiff, GameStop is a company with “no viable business plan.”

Also Read: Bitcoin Mining Equipment Seized At US Ports Nationwide: Report

Why It Matters: While some investors see Bitcoin as a way to hedge against inflation and diversify corporate balance sheets, Schiff dismissed the move as irrational speculation.

Adding to his critique, Schiff used the moment to advocate for silver, calling it “the new Bitcoin, except with real value.”

He noted that silver had climbed above $33.38, its highest price since October, and urged investors to buy before prices rise further.

GameStop's potential Bitcoin investment remains uncertain, but the stock's volatility highlights the continued influence of crypto speculation on financial markets.

Whether the company follows through or not, the market reaction signifies how digital assets continue to shape corporate investment strategies.

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