Prominent Bitcoin critic Peter Schiff has voiced his opposition to GameStop's strategy following a more than 2% drop in the company's shares. GameStop's decision to invest in Bitcoin has sparked discussions within the crypto community.
GameStop's Investment Strategy
GameStop's decision to raise convertible debt for future Bitcoin purchases has received mixed reactions. While some investors support the move, others question its long-term viability. Recently, GameStop's stock price surged by 15%, which many attribute to buzz around its Bitcoin acquisition.
Peter Schiff's Criticism
Peter Schiff has criticized GameStop's new strategy, calling Bitcoin purchases a risky move. In his post, Schiff stated that the hype around Bitcoin purchases led to FOMO-driven buying, causing a temporary increase in stock value. When the stock lost its gain, those investors who do not see Bitcoin as a viable long-term investment began to sell. Schiff refers to these investors as 'smart.'
Support from MicroStrategy
Despite the criticism, GameStop's strategy has garnered support from some institutional investors, including MicroStrategy. MicroStrategy's founder Michael Saylor stated that GameStop should increase its Bitcoin investments to gain the community's respect. Investors remain optimistic about GameStop's future, expecting the company to act similarly to MicroStrategy.
GameStop's investment in Bitcoin continues to spark debate. While some see it as a risky move, others believe it will lead to the company's future growth.
