GameStop has made a non-binding offer to acquire eBay for $55.5 billion, sparking speculation about the potential use of its $368 million bitcoin stash to finance the deal. 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 initially began building its stake.
The acquisition is expected to be funded through a combination of GameStop's $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 remains whether GameStop will sell its bitcoin holdings to help cover the costs of the deal.
In February, CEO Ryan Cohen mentioned the possibility of selling the company's crypto holdings to fund a large acquisition, describing it as 'way more compelling than bitcoin.' The company recently transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, allowing it to maintain exposure to bitcoin while generating income. GameStop's cash reserves, combined with its bitcoin stash, amount to $9.4 billion, which could be utilized to fund the acquisition. CEO Cohen has also stated that the company has the ability to issue stock to facilitate the deal.
The outcome of the proposed acquisition will determine whether GameStop's bitcoin holdings remain a long-term investment or are used to support the company's expansion into e-commerce.