GameStop has made a non-binding offer to acquire eBay for $55.5 billion, raising questions about the potential use of its $368 million bitcoin holdings to fund the acquisition. The company, which holds approximately $368 million in bitcoin, has submitted a bid to purchase eBay for $125 per share in cash and stock. This represents a 46% premium to eBay's share price in early February, when GameStop began building its position.
To finance the deal, 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 possibility of selling its bitcoin holdings to help pay for the deal has been left open by CEO Ryan Cohen, who previously stated that the company's crypto holdings could be sold to fund a large acquisition. GameStop recently transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, allowing the company to generate income while maintaining exposure to bitcoin.
The company's cash and bitcoin holdings combined provide the necessary funds to pursue the acquisition, with Cohen also noting that the firm has the ability to issue stock to complete the deal. The outcome of the proposed acquisition will determine whether GameStop's bitcoin holdings remain a long-term investment or are used to finance the company's expansion into e-commerce.