Renowned economist Peter Schiff slammed GameStop Corp.’s GME Bitcoin BTC/USD investment strategy as the company’s shares nosedived on Thursday.
What Happened: Schiff took to X, chiming in on the video game retailer’s pullback. “GME is now getting crushed. It’s down 22% on the day, down 26% from yesterday’s high,” the staunch Bitcoin critic highlighted.
Moreover, he referred to individuals who fell for the hype as “fools,” adding that “smarter” individuals are exiting the market upon realizing that wasting money buying Bitcoin is not a viable long-term business model.
“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.”
GameStop’s shares began to jump when the company revealed Tuesday that it adopted Bitcoin as a treasury reserve asset. On Wednesday, the stock reached a 10-week high of $28.36.
However, the sentiment reversed after it announced a convertible debt offering to fund BTC purchases, as many shareholders could have thought that this would be dilutive in the long run.
See Also: Shiba Inu Attracts More Diamond Hands Than Bitcoin, Ethereum But Is High Whale Concentration Something To Lose Sleep Over?
Why It Matters: Schiff, a long-time Bitcoin critic, had previously described GameStop’s consideration to buy Bitcoin as a desperate attempt to stay relevant, deeming it a "Hail Mary" play.
The company has followed in the footsteps of Strategy, the world’s largest corporate Bitcoin holder, with a stash worth over $43 billion as of this writing, according to Bitcoin Treasuries.
Price Action: At the time of writing, Bitcoin was exchanging hands at $85,071.26, down 2.90% in the last 24 hours, according to data from Benzinga Pro.
Shares of GME rose 2.90% in after-hours trading, after closing down 22.1% to $22.09 during Tuesday’s regular session.
The stock demonstrated strong momentum—a measure of a stock’s relative strength based on its price movement patterns and volatility—as of this writing. To access similar high-momentum stocks for your portfolio, visit Benzinga’s Edge Rankings score.
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