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 stash to fund 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 began building its position. To fund the acquisition, GameStop plans to utilize its $9.4 billion in 'cash and liquid investments' and up to $20 billion in financing.
The company's CEO, Ryan Cohen, has previously mentioned the possibility of selling the company's crypto holdings to fund a large acquisition, leaving the door open for the potential sale of its bitcoin holdings. GameStop recently transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, which has generated income while maintaining exposure to bitcoin.
The company's plans for its bitcoin holdings remain uncertain, with Cohen stating that the firm has the ability to issue stock to complete the deal. If successful, the acquisition would transform GameStop into a broader e-commerce player and determine the long-term fate of its bitcoin holdings.