GameStop had surged 12% after the company announced its Bitcoin investment plan<\/a> on March 25, but the rally reversed yesterday amid details of its debt issuance plan and as analysts began questioning the rationale behind the strategy.<\/p>\n Brent Kenwell, a US investment analyst at eToro, said investors are questioning the company’s business model. <\/span><\/p>\n “If Bitcoin is going to be the pivot, where does that leave everything else?” he said in an interview<\/a> with Reuters yesterday.<\/span><\/p>\n With investors unsure of GameStop’s future direction, Wedbush analyst Michael Pachter maintains his underperform rating for GME.<\/span><\/p>\n “GameStop’s share price will drift lower prior to the issuance of the convert, particularly given that a convert investor will receive a zero coupon and will be required to have faith that the GameStop meme phenomenon will persist for another five years,” he said. <\/span><\/p>\n Bitcoin critic Peter Schiff also shared his take on GameStop’s recent decision to buy BTC. <\/span><\/p>\n “Gambling on companies buying Bitcoin is not a good investment strategy,” he said in a March 27 X post. <\/span><\/p>\n $GME<\/a> has lost all of yesterday's Bitcoin-inspired 15% gain. Shares are now down 2% over the two days combined. 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.<\/p>\n — Peter Schiff (@PeterSchiff) March 27, 2025<\/a><\/p><\/blockquote>\n![\"GameStop\"](\"https:\/\/www.pymnts.com\/wp-content\/uploads\/2025\/03\/GameStop-bitcoin-cryptocurrency.jpg\")
<\/p>\nAnalysts Question GameStop’s Business Model<\/span><\/h2>\n
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