On May 4, 2026, GameStop submitted an unsolicited, non-binding proposal to acquire eBay for approximately $55.5 billion, or $125 per share — a 20% premium over eBay's prior Friday close. The offer consists of roughly equal parts cash and GameStop common stock, with TD Bank providing a $20 billion debt commitment letter to support the cash component. GameStop’s own balance sheet, fortified by years of cost-cutting and a deliberate pivot into digital assets, includes a $519 million bitcoin treasury built from 4,710 BTC purchased during fiscal 2025.
Offer Details and Potential Proxy Fight
Ryan Cohen, CEO of GameStop, communicated to eBay's board that he views the platform as capable of becoming a significant rival to Amazon. He has indicated his willingness to pursue a proxy fight and take the offer directly to shareholders if the board refuses to engage in negotiations. GameStop ended fiscal 2025 with nearly $9 billion in total cash and investments, providing ample financial flexibility for such a transformative deal.
The Bitcoin Connection
The bitcoin angle is central to GameStop's modernized balance sheet. The company acquired 4,710 BTC for roughly $500 million during fiscal 2025, with 4,709 of those coins pledged as collateral in a covered-call strategy. The position has since appreciated to about $519 million and forms part of the equity underpinning the eBay bid. This approach mirrors, in spirit, the model popularized by Strategy (formerly MicroStrategy), which holds 818,334 BTC. However, GameStop's variant is distinct: instead of merely accumulating bitcoin, it is leveraging its non-traditional balance sheet to pursue a large-scale M&A ambition that would have seemed implausible three years ago.
Market Reaction
GameStop shares closed at $26.53 on May 1, up 6.33%, as investors priced in the transformational possibility. eBay's stock surged more than 10% in after-hours trading following the reports. The GME memecoin mirrored the excitement, rising 54% within hours of the news breaking. eBay's board has not yet publicly responded to the proposal.
Strategic Implications
If successful, the acquisition would transform GameStop from a legacy brick-and-mortar video game retailer into an e-commerce powerhouse capable of challenging Amazon. More importantly, it marks a new chapter for bitcoin as a corporate strategic asset — moving beyond passive treasury holdings to directly enabling leveraged buyouts. While GameStop’s bitcoin holdings are modest compared to Strategy’s 818,334 BTC, the combination of digital assets with traditional M&A financing could set a precedent for other crypto-rich companies seeking to make bold acquisitions.