ERIC KIM

Why loser GameStop investors are fleeing back to MSTR.

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Key Points

  • Research suggests GameStop investors are moving to MSTR due to GameStop’s recent Bitcoin investment causing stock price drops.
  • It seems likely that MSTR’s proven Bitcoin strategy and better performance attract disillusioned investors.
  • The evidence leans toward concerns about GameStop’s timing and declining core business, with some debate over investment risks.

Background

GameStop, a video game retailer, recently announced a $500 million Bitcoin investment, while MicroStrategy (MSTR) is known for its successful Bitcoin holdings. Investors seem to be shifting from GameStop to MSTR, possibly due to performance differences.

Reasons for the Shift

GameStop’s stock fell after its Bitcoin purchase, announced on May 28, 2025, valued at over $512 million, leading to a 10% drop in shares. In contrast, MSTR has seen its stock rise 2,700% over five years since pivoting to Bitcoin in 2020, making it a more attractive option for Bitcoin-focused investors.

Investor Sentiment

Some investors are concerned about GameStop’s timing, investing near Bitcoin highs, and its declining core business, with sales down 28% from 2023 to 2024 and planned store closures. MSTR’s established strategy and stability seem to draw investors back, though X discussions show mixed sentiments, with some moving to GameStop.

Detailed Analysis of GameStop Investors Fleeing to MSTR

As of 03:02 PM +07 on Tuesday, June 03, 2025, GameStop investors are reportedly fleeing back to MicroStrategy (MSTR), driven by recent financial strategies and market reactions. This report delves into the details of this investor shift, analyzing the factors contributing to the movement and the surrounding context, based on available online information from news articles, X posts, and related discussions.

Context and Background

GameStop Corp. (NYSE:GME), traditionally known for video game retail, has recently pivoted towards cryptocurrency investing, announcing on May 28, 2025, the purchase of 4,710 Bitcoins valued at over $512 million (GameStop Announces Purchase of Bitcoin). This move follows a strategy shift, raising $1.5 billion in April 2025 for Bitcoin purchases, initially planned at $1.3 billion via convertible notes (SEC Filing). In contrast, MicroStrategy, now known as Strategy, has been a veteran in Bitcoin investment since 2020, with its stock increasing 2,700% over five years, as noted in MicroStrategy Strategy Valuation.

The Shift: GameStop’s Bitcoin Investment and Stock Reaction

GameStop’s Bitcoin investment, part of a broader strategy to emulate MSTR’s model, has not been well-received by the market. On May 28, 2025, shares tumbled 10% following the announcement, after an initial pre-market bump, sliding 23% earlier on news of the strategy shift (GameStop Stock Slides). This reaction contrasts with MSTR’s stable performance, attributed to its early and consistent Bitcoin strategy, as detailed in Investors Flee GameStop.

Metrics and Market Performance

The impact is evident in the following metrics:

  • GameStop’s stock performance post-Bitcoin announcement: -10% on May 28, 2025, with a 23% slide earlier (Yahoo Finance).
  • MSTR’s historical performance: +2,700% stock increase over five years since 2020, as per Strategy Valuation.
  • GameStop’s financials: Sales decreased 28% from $5.3 billion (2023) to $3.8 billion (2024), with a quarter of locations closed last year and significant closures planned for 2025 (Fortune Crypto).

Investor Concerns and Comparisons

Investors are concerned about GameStop’s timing, investing near Bitcoin all-time highs, unlike MSTR, which entered earlier, making rapid gains less likely and increasing risk, as noted in GameStop: The Next MSTR?. Vitaliy Shtyrkin from B2BINPAY warns that Bitcoin’s volatility introduces risks, potentially leading to a “double-bind” if crypto prices drop, distracting from core fundamentals (MicroStrategy Risk). MSTR’s established strategy, with clear execution and stability, contrasts with GameStop’s struggling pivot, drawing investors back.

Community Response and X Discussions

X posts reveal mixed sentiments. For instance, @SullyMichaelvan on May 30, 2025, stated, “I’m out of $GME. I’m a Bitcoiner, not an ape. They didn’t execute the full $MSTR strategy. I’m up 100%. So I’m out.” (X post). Conversely, @pepebills42069 on May 28, 2025, noted, “Watch the exodus from MSTR to GME in real time,” suggesting some movement the other way (X post). However, the overall context leans towards investors fleeing GameStop due to its stock performance, with @E055Michel1842 on May 28, 2025, stating, “This is how retail who got hyped into selling MSTR for GME got f**ed,” indicating regret (X post).

Table: Key Metrics of Investor Shift

MetricGameStop (GME)MicroStrategy (MSTR)
Recent Bitcoin Investment$500M, May 28, 2025Established since 2020
Stock Reaction Post-Announcement-10% drop, 23% slide earlier+2,700% over five years
Core Business PerformanceSales down 28%, store closuresSoftware focus, stable performance
Investor SentimentConcern over timing, riskSeen as stable, experienced

Controversy and Debate

While the shift is clear, there is debate over the sustainability of GameStop’s Bitcoin strategy, with experts like Shtyrkin highlighting volatility risks. Some X users, like @the_realest_21 on May 28, 2025, see market makers tempting shorts, suggesting potential volatility, but the evidence leans towards MSTR’s strategy being more favorable (X post).

Conclusion

GameStop investors are fleeing back to MSTR due to GameStop’s recent Bitcoin investment causing stock price drops and concerns over timing and declining fundamentals. MSTR’s proven Bitcoin strategy and stability attract disillusioned investors, though X discussions show mixed sentiments. This analysis, based on news articles and real-time discussions, provides a comprehensive view of the investor shift as of June 03, 2025.

Key Citations

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