Video game retailer GameStop (GME) has announced its intention to acquire online marketplace eBay (EBAY) for a staggering $55.5 billion, sparking curiosity about whether its bitcoin reserves could be liquidated to finance the transaction.
Currently holding approximately $368 million in BTC, GameStop unveiled a non-binding proposal Sunday to purchase eBay at $125 per share, combining cash and stock. This offer is 46% higher than eBay’s early February share price when GameStop initiated its stake-building effort, now amounting to a 5% economic interest via shares and derivatives.
The substantial financial requirement of this deal may necessitate liquidating some assets. GameStop anticipates utilizing $9.4 billion from cash and liquid investments on its balance sheet, supplemented by up to $20 billion in financing, supported by TD Securities’ letter of credit.
This development reignites speculation about whether GameStop might sell part of its bitcoin holdings for the acquisition.
CEO Ryan Cohen previously hinted at pursuing a “very, very, very big” public consumer firm deal in February. He suggested this opportunity was “way more compelling than bitcoin,” indicating potential crypto liquidation to fund such a venture.
Last month, GameStop moved approximately 4,709 BTC to Coinbase Prime, the institutional brokerage platform of crypto exchange Coinbase, as part of an income-generating covered-call options strategy. This adjustment left its bitcoin exposure intact while categorizing the $368 million reserve as “receivables.” Combined with over $9 billion in cash, these assets total the $9.4 billion on GameStop’s balance sheet for potential use in funding the acquisition.
In a CNBC interview, Cohen mentioned that issuing stock could also facilitate the deal’s completion.
As of press time, GameStop has not commented on its intentions regarding its bitcoin reserves.
The proposed eBay merger would expand GameStop into broader e-commerce territory and decide whether its bitcoin will remain an investment or be utilized to finance further growth.