GameStop is back in headlines but this time, it’s not about meme stock mania. The retailer is raising $1.75 billion, and one possible use of those funds? Buying Bitcoin.
That’s the kind of move that might’ve thrilled the market a year ago. But according to Galaxy Digital CEO Mike Novogratz, the strategy is losing its shine.
“You see a whole new range of… balance sheet company plays. I think that’s probably getting a little overhyped,” Novogratz said in a recent Fox Business interview, referencing companies copying Michael Saylor’s Bitcoin-heavy approach.
It’s a pointed take from someone who’s long championed Bitcoin and it lands at a moment when institutional interest is clearly rising again.
Let’s understand his view.
Debt + Bitcoin = Risk?
Novogratz’s concern is the growing number of public companies chasing Bitcoin exposure without considering the risk profile.
Several of these firms, including GameStop, are funding their strategies through massive debt raises. That’s raising eyebrows among market watchers, especially those who remember what overleveraged bets look like in a downturn.
The concern isn’t about Bitcoin itself but about how it’s being acquired. In short: just because Saylor made it work doesn’t mean everyone else will.
Bitcoin Thrives When Trust Fails
If you’re wondering whether Novogratz has turned bearish, the answer is no – not even close. His recent tweet cuts straight to the core of why he still sees Bitcoin as essential.
“We are in a bear market in trust across the country and the world!” he posted on June 10. “That is the underpinning of the crypto rally.”
He pointed back to 2008, when Bitcoin first emerged from the wreckage of the global financial crisis. According to Novogratz, not much has changed, except the stakes are higher. “Sadly the world hasn’t gotten [trust] back,” he added. His advice to investors was “Stay long crypto.”
BTC Price Outlook: It’s All About Washington
Novogratz also weighed in on what could drive Bitcoin higher from here and it’s got everything to do with U.S. fiscal policy.
“We had a populist government on the left, and now we have a populist government on the right. They love spending money,” he said. In his view, that’s setting Bitcoin up for “a really nice” price trajectory.
He didn’t give a specific target for the Bitcoin price this time and left it open-ended. “Once it goes, you don’t know where it’s gonna stop.”
But beyond price action, Novogratz is bullish on something even bigger – the structural shift in the U.S. regulatory climate. He believes the next 24 months will look nothing like the last, with trends like tokenized equities and fixed income poised to reshape how institutions interact with the space.
Still Bullish, But Not Blind
To be clear, Novogratz isn’t calling for companies to avoid Bitcoin. What he’s saying is more nuanced; that buying BTC should be part of a thoughtful strategy, not a bandwagon move.
The irony is hard to miss: as traditional institutions grow more interested in crypto, some newer players are adopting the kind of herd behavior the industry was built to move past.
Still, Novogratz remains one of the loudest voices pushing for responsible growth.
