GameStop has put forward a $55.5 billion bid for eBay, and the size of the proposed deal has quickly drawn attention to another item on its balance sheet: bitcoin. The central question is whether the company may monetize its crypto holdings, valued at about $368 million, to help fund the acquisition.
Offer values eBay at $125 a share
According to the report, GameStop is offering a mix of cash and stock, pricing the deal at $125 per share. That represents a premium of about 46% to eBay's share price in early February. GameStop had already built a position of roughly 5% in eBay, indicating the move had been in the works for some time.
Company points to $9.4 billion on hand and $20 billion in debt backing
Funding has become the main issue for investors given the scale of the takeover attempt. GameStop said it plans to use about $9.4 billion in cash and liquid investments and has secured a commitment from TD Bank for around $20 billion in debt financing. Ryan Cohen has also said the company has the ability to issue new shares to complete the transaction, leaving several financing channels on the table.
Bitcoin sale remains an open question
Cohen said in February that GameStop was targeting a publicly listed consumer company for a “very, very, very large” acquisition. At the time, he also said the plan was “more attractive than investing in bitcoin” and did not rule out selling crypto assets to raise funds.
Last month, GameStop transferred about 4,709 BTC to Coinbase Prime to execute a covered call strategy, allowing it to keep exposure while generating additional cash income. After that move, the bitcoin position, worth around $368 million, was recorded as a receivable. As of publication, the company had not said whether the bitcoin would be sold as part of the financing package for the eBay bid.
If the deal goes through, GameStop would move beyond its roots as a video game retailer and into a much broader e-commerce role. For now, the market is focused on a narrower issue: whether the company's bitcoin stays as a strategic asset or becomes one source of takeover funding.