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 holdings 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 initially began building its position. To finance 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 remains whether GameStop will sell its bitcoin holdings to support the acquisition. CEO Ryan Cohen previously stated that the company might consider selling its crypto assets to fund a major acquisition, describing the plan as more compelling than its bitcoin holdings. GameStop recently transferred approximately 4,709 BTC to Coinbase Prime as part of a covered-call options strategy, allowing the company to maintain exposure to bitcoin while generating income. The firm's $9.4 billion in cash, combined with its $368 million bitcoin stash, could be used to support the acquisition.
In an interview, Cohen noted that the company has the ability to issue stock to facilitate the deal. The proposed acquisition would transform GameStop into a broader e-commerce player and raise questions about the long-term status of its bitcoin holdings.