GameStop (GME) just made a $1.75 billion bet. It wasn’t on games, e-commerce, or streaming. It was on Bitcoin. The problem? Investors didn’t cheer. They sold.
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GME shares cratered over 24% after the company announced a zero-coupon convertible note offering—proceeds that may fund more Bitcoin buys. GameStop has already purchased 4,170 BTC, worth around $450 million. The company seems to be following Strategy’s (MSTR) Bitcoin-buying recipe. But unlike Michael Saylor, it’s missing key ingredients.
Saylor Bought Time, GameStop Just Bought Volatility
In 2020, Michael Saylor took a $250 million corporate war chest and moved it into Bitcoin. He called cash a “melting ice cube.” At the time, the Fed was printing trillions. Interest rates were near zero. Inflation was spiking. That made Bitcoin’s hard cap appealing. It was a hedge. It was bold. And it made sense for a profitable company with consistent cash flow and no real growth strategy left.
GameStop is not the same setup. The core business is still deteriorating. It’s not a cash machine—it’s a meme stock with no moat. The Bitcoin purchase feels like a lifeline, not a strategy.
GameStop’s Convertible Notes Didn’t Build Confidence
GameStop’s $1.75 billion note sale added more risk, not less. These are 0% interest notes convertible into stock, meaning current shareholders face dilution. It’s a short-term injection with long-term cost. In contrast, Strategy used its debt offerings to aggressively accumulate BTC during bullish cycles—but with a clear narrative and balance-sheet support.
GameStop doesn’t have that. What GameStop has is a gamble, jumping into Bitcoin without the cash flow or conviction that made Saylor’s play work.
Bitcoin Needs Context, Not Copycats
When Saylor went all-in on BTC, it was seen as visionary. He backed it up with education, conviction, and a business model that could absorb volatility. He made Bitcoin part of the brand. GameStop hasn’t done that. It hasn’t told the story. It hasn’t built the infrastructure. It hasn’t even clarified whether Bitcoin is a treasury asset or a marketing stunt.
And now the market is calling the bluff.
The Timing Doesn’t Help
GameStop’s move comes at a time when crypto is already sensitive to macro shocks. Institutional buyers are in, but cautiously. ETFs are reshaping flows. Regulatory clarity is uneven. For a retail stock already under scrutiny, loading up on crypto now doesn’t look bold. It looks desperate.
Michael Saylor made Bitcoin a conviction trade and reshaped his company around it. GameStop is trying to borrow that playbook, but without the balance sheet, leadership, or long-term vision. Investors noticed. That’s why GME is getting punished, not praised.
Is GameStop a Good Buy?
If GameStop hoped its Bitcoin experiment would win over analysts, it hasn’t worked.
According to the latest data from TipRanks, only one analyst has issued a formal rating on GME stock in the last three months—and it’s not pretty. Wedbush’s Michael Pachter slapped the stock with a rare Sell rating and a $13.50 average GME price target. That represents a brutal -37.83% downside from current levels.
The TipRanks AI model takes a slightly more generous view, maintaining a Hold rating with a $30 price target—implying a 38.15% upside.
