In a bold move to expand its operations, GameStop has put forward a non-binding offer of $55.5 billion to acquire eBay, reigniting debates about the possible use of its substantial bitcoin holdings to support the deal. With approximately $368 million in bitcoin, GameStop's proposed acquisition has significant implications.
The company submitted its offer to purchase eBay for $125 per share in cash and stock, representing a 46% premium to eBay's share price at the beginning of February, when GameStop initially started building its stake. GameStop currently holds a 5% economic interest in eBay through shares and derivatives. To fund the acquisition, GameStop plans to utilize its $9.4 billion in cash and liquid investments, as well as up to $20 billion in financing backed by a letter from TD Securities.
The question on everyone's mind is whether GameStop will liquidate its bitcoin holdings to help finance the deal. This uncertainty follows earlier comments from CEO Ryan Cohen, who hinted at a major acquisition and did not rule out the possibility of selling the company's crypto assets to fund it.
Last month, GameStop transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, generating income while maintaining exposure to bitcoin. The company's cash reserves and bitcoin holdings combined provide the necessary funds for the acquisition.
In a recent interview, Cohen mentioned the option to issue stock to facilitate the deal. As of now, GameStop has not commented on its plans for its bitcoin holdings. The proposed acquisition of eBay would transform GameStop into a more comprehensive e-commerce player and determine the fate of its bitcoin holdings as either a long-term investment or a means to finance its expansion.