In a bid to expand its operations, GameStop has proposed a $55.5 billion acquisition of online marketplace eBay, sparking speculation about the possible sale of its bitcoin holdings to fund the deal. The video game retailer, which currently holds approximately $368 million in bitcoin, has submitted a non-binding offer to purchase eBay for $125 per share in cash and stock. This offer represents a 46% premium to eBay's share price in early February, when GameStop initially began building its position. With a 5% economic stake in eBay through shares and derivatives, GameStop is poised for significant growth.
However, the acquisition's substantial cash requirement has raised questions about whether the company will liquidate its bitcoin assets to support the deal. GameStop's CEO, Ryan Cohen, had previously hinted at a major acquisition, describing it as 'way more compelling than bitcoin' and leaving open the possibility of selling the company's crypto holdings to finance the transaction. The company recently transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, generating income while maintaining exposure to bitcoin.
With $9.4 billion in cash and liquid investments on its balance sheet, coupled with the potential for up to $20 billion in financing, GameStop appears to have the necessary resources to fund the acquisition. Nevertheless, the fate of its bitcoin holdings remains uncertain, and the company has not responded to requests for comment on its plans. If successful, the proposed eBay deal would transform GameStop into a more diverse e-commerce player, potentially altering the company's long-term strategy for its bitcoin reserves.