GameStop's $55.5 billion eBay takeover bid puts its $368 million bitcoin stash in the crosshairs

GameStop (GME) is aiming for a major expansion with a proposed $55.5 billion acquisition of online marketplace eBay (EBAY), raising fresh questions about whether its bitcoin holdings could help fund the deal.

The video game retailer, which holds about $368 million worth of $BTC, submitted a non-binding offer Sunday to buy eBay for $125 per share in cash and stock. The bid represents a 46% premium to eBay’s share 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 deal of this size would likely require significant cash. GameStop said it expects to fund the offer using its $9.4 billion of "cash and liquid investments" on its balance sheet and up to $20 billion in financing, backed by a letter from TD Securities.

Will GameStop sell $BTC?

That raises fresh questions about whether GameStop will sell its $BTC to help pay for the deal.

The acquisition plan follows earlier remarks from CEO Ryan Cohen, who said in February he was pursuing a "very, very, very big" acquisition of a public consumer firm. He described the plan as "way more compelling than bitcoin" and left open the option of selling the company’s crypto holdings to fund a deal.

GameStop disclosed last month that it shifted about 4,709 $BTC to Coinbase Prime, crypto exchange Coinbase's prime brokerage platform for institutions, as part of a covered-call options strategy, keeping exposure to bitcoin while generating income.

The company held little over $9 billion in cash and accounted for its $368 million bitcoin stash as "receivables" after the Coinbase Prime maneuver. Those items add up to the $9.4 billion balance sheet power that could be used to fund the acquisition.

In an interview with CNBC, Cohen also said the firm has the "ability to issue stock in order to get the deal done."

GameStop did not respond to a request for comment on its plans for its bitcoin holdings by press time.

The proposed eBay deal would turn GameStop into a broader e-commerce player. It will also determine whether the firm's bitcoin remains a long-term holding or becomes a funding source for the expansion.