Key Takeaways
GameStop has put forward a non-binding proposal to acquire eBay for $55.5 billion, pricing shares at $125 each
Financing would come from $9.4 billion in cash reserves and as much as $20 billion in TD Bank-backed debt
The retailer maintains approximately 4,710 BTC valued between $368 million and $519 million
Ryan Cohen, GameStop’s CEO, stated the acquisition strategy surpasses bitcoin as an investment priority
Following the announcement, eBay stock jumped 10%+ after-hours while GameStop shares climbed 6.33%
On May 4, 2026, GameStop put forth a proposal to purchase the e-commerce giant eBay for $55.5 billion. The non-binding offer establishes eBay’s valuation at $125 per share through a structure combining cash and GameStop equity in approximately equal portions.
The proposal offers shareholders a premium of roughly 20% above eBay’s most recent closing price before the announcement, and approximately 46% higher than where shares traded in early February when GameStop began accumulating its position. The company has disclosed a 5% economic stake in eBay through a combination of direct shareholdings and derivative instruments.
To finance this acquisition, GameStop intends to deploy $9.4 billion from its existing cash position alongside up to $20 billion in debt capital, supported by a formal commitment from TD Bank.
Ryan Cohen, the company’s CEO, has confirmed that issuing additional GameStop shares remains an available option to facilitate deal completion. In communications with eBay’s leadership, Cohen positioned the marketplace as a credible competitor to Amazon.
Cohen has indicated willingness to bypass eBay’s board and present the proposal directly to shareholders through a proxy contest should management prove unresponsive.
Bitcoin Position Becomes Strategic Asset
As fiscal 2025 concluded, GameStop held approximately 4,710 BTC on its books, accumulated through purchases totaling roughly $500 million throughout the year. Current market valuations place this cryptocurrency position between $368 million and $519 million, depending on pricing sources and timing.
The company recently transferred 4,709 bitcoin to Coinbase Prime to implement a covered-call options approach. This strategy enables GameStop to maintain its cryptocurrency exposure while simultaneously generating revenue from the holdings.
Following this transfer, GameStop reclassified its bitcoin as “receivables” for balance sheet purposes. When combined with traditional cash reserves, this accounting treatment supports the $9.4 billion in liquid resources earmarked for the acquisition.
Speculation now centers on whether GameStop will liquidate part or all of its bitcoin position to support the eBay transaction. Cohen previously characterized the acquisition opportunity as “way more compelling than bitcoin” while keeping options open regarding potential cryptocurrency sales.
GameStop had not issued any statement regarding its bitcoin strategy at press time.
Investor Response and Market Movement
GameStop’s stock price increased 6.33% to settle at $26.53 on May 1. eBay experienced after-hours trading gains exceeding 10% as news of the offer circulated.
GameStop Corp., GME
The GME-themed meme cryptocurrency also experienced significant appreciation, rallying 54% in the hours immediately following the disclosure.
eBay’s board of directors has yet to issue a formal response to the acquisition proposal.
Should the transaction reach completion, it would transform GameStop from a specialized video game merchant into a diversified e-commerce operation. The deal would rank among the most significant corporate acquisitions involving a company maintaining a substantial bitcoin treasury.
GameStop’s strategy shows some parallels to Strategy’s approach, which maintains 818,334 BTC and leverages capital markets for continued bitcoin accumulation, though GameStop appears focused on deploying its crypto-enhanced balance sheet toward mergers and acquisitions rather than additional digital asset purchases.
