Bitcoin critic Peter Schiff has slammed GameStop’s decision to use its cash to buy Bitcoin. The news was enough to send the GameStop (NYSE: GME) stock soaring by a massive 20%. Commenting on this, Schiff said that Bitcoin is still overvalued in comparison to GME.
Peter Schiff Slams GameStop’s Bitcoin Investment Plan
Bitcoin critic and economist Peter Schiff has voiced skepticism over GameStop’s recent announcement regarding a possible Bitcoin acquisition. Schiff described the move as a “Hail Mary” from the company, which he claims lacks a viable business plan. In his message on the X platform, Schiff wrote:
“GameStop, a company with no viable business plan, has thrown another Hail Mary by announcing that it might use its cash to buy Bitcoin”.
He further argued that Bitcoin is “even more overpriced than GME,” drawing a parallel between the two as speculative assets.
Several global firms have started adopting the MicroStrategy playbook of adding Bitcoin to their balance sheets. Over the past four years, this strategy has yielded multi-fold returns for MSTR investors. Japanese firm Metaplanet also witnessed its stock price surge more than 4,000% in less than a year of adopting the Bitcoin playbook.
However, Peter Schiff has said that just adopting Bitcoin to boost the stock price is not a good sign, if the business has no underlying strength.
Will Meme GME Stock Continue to Rally?
Everyone knows the massive GameStop frenzy that took Wall Street by storm in January 2021, liquidating several hedge funds in this process. Back then the GME Stock price rallied from $5 to $80 in less than a month’s time.
Now that the video game retailer is considering adding Bitcoin to its balance sheet, we could possibly see yet another explosive rally in GME stock. Note that the company is still in the consideration phase for crypto investments abd hasn’t finalized yet.
Last weekend, GameStop CEO Ryan Cohen shared a photo on social media platform X featuring Michael Saylor, co-founder and chairman of MicroStrategy, the largest corporate holder of Bitcoin. However, sources familiar with the matter stated that Saylor is not currently involved in GameStop’s discussions about potential cryptocurrency investments.
In 2022, GameStop made a foray into the crypto space by launching wallets to manage cryptocurrencies and non-fungible tokens (NFTs). However, the company discontinued the service in 2023, citing “regulatory uncertainty” as the reason for the closure.
Next Targets for GME
Since reaching a seven-month high in early January, GameStop shares have formed a falling wedge pattern, a bullish chart formation suggesting a potential upward breakout once the upper trendline is surpassed.
Investors should watch the $29 level closely, as this range aligns with a horizontal resistance zone tied to multiple price points, including last July’s swing high. A breakout above $29 could pave the way for further gains, potentially driving the stock toward the $32 region.
The post Peter Schiff Says Bitcoin Is Overpriced Than GameStop After GME Stock Rally appeared first on CoinGape.
