GameStop Corp. (NYSE: GME) is reportedly exploring Bitcoin investment

The company seems to be looking at other approaches to keep investor interest and financial stability given its retail gaming sector is suffering against digital distribution and dwindling foot traffic.

GameStop Corp. (NYSE:GME), the business that was bought up during the meme stock boom of 2021, is reportedly exploring an investment in Bitcoin, an action that prominent economist Peter Schiff has slammed as a desperate attempt by a company without a clear business vision.

As the retail gaming sector faces difficulties due to digital distribution and reduced foot traffic, GameStop is reportedly considering alternative avenues to maintain investor interest and financial stability.

According to reports, GameStop may be adopting the same strategy as MicroStrategy, which is known for its substantial investment in Bitcoin. If GameStop proceeds as rumored, the company will undergo a significant shift in strategy. However, critics of this move, such as Peter Schiff, question whether Bitcoin is a suitable solution for a company still grappling with fundamental operational issues.

“A Hail Mary action,” says Peter Schiff

Prominent economist and outspoken critic of Bitcoin, Peter Schiff, has expressed strong disapproval of GameStop’s rumored investment in Bitcoin. He dismissed the move as a “Hail Mary” action by a company lacking a strong commercial plan. According to Schiff, this investment would introduce unnecessary risk to the company’s operations. Instead of addressing long-term operational and financial challenges, GameStop is reportedly pivoting to Bitcoin.

“Go collect stamps. At least that’s an interesting hobby,” said the economist.

Schiff further argued that Bitcoin itself is largely speculative and perhaps “more overpriced than GME stock.” Suggesting that “smart investors are selling rather than buying into such speculative ventures,” he cautioned companies turning to Bitcoin to try to salvage their financial standing against making poor decisions.

His remarks highlight the ongoing debate about Bitcoin’s role in company finances. While proponents view Bitcoin as a hedge against inflation and economic instability, critics like Schiff maintain that it remains a volatile and risky asset.

Slight Brief Lift in GameStop Stock Performance

Rumors of GameStartup’s interest in Bitcoin reportedly led to a brief surge in the company’s shares, showing an 8.6% rise in pre-market trading. However, this rally was short-lived as the stock began its downward decline.

Shares of GameStop were trading at $22.09 by 28 March, 2025, indicating that investors remain skeptical.

This volatility raises questions about whether news about Bitcoin can provide struggling companies with lasting support. While some companies have gained attention and experienced temporary surges in stock value due to Bitcoin investments, these actions may not always resolve fundamental business issues.

Comparisons to MicroStrategy’s Bitcoin Strategy

Schiff further drew comparisons between the rumored move by GameStop and the Bitcoin investing approach adopted by CEO Michael Saylor at MicroStrategy. Since 2020, MicroStrategy has been a major corporate holder of Bitcoin, investing billions of dollars in the cryptocurrency.

MicroStrategy’s stock has seen a notable increase in value due to its Bitcoin holdings, although the long-term sustainability of this strategy remains to be seen. The company is highly sensitive to changes in the market as it relies heavily on Bitcoin. Schiff’s analogy raises concerns about whether a struggling company like GameStop can achieve similar success.

Unlike MicroStrategy, which operates in the software and business intelligence domains, GameStop is still heavily reliant on traditional retail operations. This factor makes it interesting to see if GameStartup can effectively integrate Bitcoin into its business plan or if this move is primarily intended to attract speculative funds.