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“GameStop’s Bitcoin Gamble: Why Mimicking MicroStrategy’s Moves Spells Trouble”‼️‼️‼️

Here’s the deal: GameStop is trying to pull a page from MicroStrategy’s bitcoin-buying playbook, but it’s not landing the same way—and the stock’s recent nosedive proves it. MicroStrategy’s been crushing it by issuing convertible notes to scoop up bitcoin, turning a fat premium on its shares into a clever arbitrage move. Their CEO, Michael Saylor, has basically been selling high (stock) to buy low (bitcoin), and the market’s been eating it up, even with a stagnant core business.

GameStop, though? Different story. They’re sitting on a pile of cash—about 80% of their assets—that investors have already juiced up to a premium. That cash was their golden ticket, ballooning their book value per share after those wild 2024 meme stock raises. The vibe was that Ryan Cohen, their big-shot CEO, would work some magic, maybe snag a game-changing acquisition to flip the script on GameStop’s fading retail story. Instead, he’s betting on bitcoin, and it’s rattling the cage.

See, MicroStrategy trades at less than twice its bitcoin stash, while GameStop’s already over double its cash value. Converting that cash into bitcoin doesn’t scream “value add”—it’s more like swapping one overhyped asset for another. Plus, those convertible notes could either drain cash reserves or dilute shareholders down the line. Investors aren’t here for a bitcoin proxy; they can buy BTC or an ETF themselves. They wanted Cohen to swing big, not just follow Saylor’s lead.

Cohen’s shown he can trim fat—GameStop’s Q4 operating income says as much—but that’s not the bold growth play the meme crowd banked on. This bitcoin pivot feels like a head-scratcher, risking the very premium that’s kept GME afloat. Traders wanted a visionary, not a copycat.