GameStop (GME) is aiming for a major expansion with a proposed $55.5 billion acquisition of online marketplace eBay (EBAY), raising new questions about whether its Bitcoin the assets could help finance the transaction.
The video game retailer, which holds approximately $368 million in BTC, submitted a non-binding offer on Sunday to buy eBay for $125 per share in cash and stock. The offer represents a 46% premium to eBay’s stock price in early February, when GameStop began building a position. The company said it now holds a 5% economic stake through shares and derivatives.
A transaction of this size would likely require significant liquidity. GameStop said it plans to finance the offering using its $9.4 billion in “cash and liquid investments” on its balance sheet and up to $20 billion in financing, supported by a letter from TD Securities.
Will GameStop sell BTC?
This raises new questions about whether GameStop will sell its BTC to help pay for the transaction.
The proposed acquisition follows earlier remarks from CEO Ryan Cohen, who said in February that he was pursuing a “very, very, very significant” acquisition of a public consumer company. He described the plan as “much more compelling than Bitcoin” and left open the possibility of selling the company’s crypto holdings to fund a transaction.
GameStop revealed last month that it had moved approximately 4,709 BTC to Coinbase Prime, Coinbase’s primary brokerage platform for institutions, as part of a covered call strategy, retaining exposure to bitcoin while generating revenue.
The company held just over $9 billion in cash and counted its $368 million in bitcoin as “receivables” after the Coinbase Prime maneuver. These items total $9.4 billion in balance sheet power that could be used to finance the acquisition.
In an interview with CNBC, Cohen also said the company had “the ability to issue stock in order to complete the transaction.”
GameStop did not respond to a request for comment on its plans for its Bitcoin holdings as of publication time.
The proposed deal with eBay would make GameStop a broader e-commerce player. It will also determine whether the company’s bitcoin remains a long-term asset or becomes a source of funding for expansion.
