TLDR
- GameStop presented a preliminary proposal to acquire eBay for $55.5 billion, offering $125 for each share
- Financing would come from $9.4 billion cash reserves and as much as $20 billion in credit from TD Bank
- The retailer possesses approximately 4,710 BTC valued between $368 million and $519 million
- Ryan Cohen, GameStop’s CEO, stated the growth strategy is “way more compelling than bitcoin”
- After-hours trading saw eBay shares climb more than 10%; GameStop stock increased 6.33%
On May 4, 2026, GameStop put forward a proposal to purchase the e-commerce platform eBay for $55.5 billion. The non-binding proposal prices eBay shares at $125 each, utilizing an approximately equal combination of cash and GameStop equity.
GAMESTOP’S $55.5B EBAY TAKEOVER BID PUTS ITS BITCOIN STASH IN PLAY
Bullish or bearish for Bitcoin? Could be either.@gamestop submitted a non-binding $55.5 billion offer for @eBay on Sunday, $125 a share in cash and stock. The cash leg draws on $9.4 billion of cash and liquid… pic.twitter.com/m7eff5zICE
— BSCN (@BSCNews) May 4, 2026
This proposal represents approximately a 20% premium over eBay’s most recent closing value before the announcement, and roughly 46% above eBay’s valuation in early February, when GameStop began accumulating its position. The video game retailer reports holding a 5% economic stake in eBay through a combination of direct shares and derivative instruments.
To finance the transaction, GameStop intends to utilize $9.4 billion from its existing cash position and secure up to $20 billion through debt financing, supported by a commitment letter from TD Bank.
Ryan Cohen, the company’s CEO, acknowledged that GameStop maintains the flexibility to issue additional shares to facilitate the transaction’s completion. He communicated to eBay’s leadership that he views the marketplace as a credible challenger to Amazon.
Cohen indicated his willingness to bypass eBay’s board and present the proposal directly to shareholders if leadership refuses to negotiate — an approach commonly referred to as a proxy fight.
GameStop’s Bitcoin Treasury Under Scrutiny
At the conclusion of fiscal 2025, GameStop reported holding approximately 4,710 BTC on its corporate balance sheet, accumulated through roughly $500 million in purchases throughout the year. Current valuations place this position between approximately $368 million and $519 million, depending on market data sources and timing.
The retailer recently transferred 4,709 of these coins to Coinbase Prime as part of implementing a covered-call options approach. This strategy enables GameStop to maintain ownership of its bitcoin while simultaneously generating revenue from the holdings.
Following this transfer, GameStop reclassified its bitcoin holdings as “receivables” in its financial statements. When combined with traditional cash holdings, this calculation arrives at the $9.4 billion in liquid assets referenced in the acquisition financing structure.
The critical question facing investors is whether GameStop will liquidate part or all of its bitcoin position to support the eBay transaction. Cohen previously characterized the acquisition strategy as “way more compelling than bitcoin” and declined to rule out selling the cryptocurrency holdings.
GameStop had not issued additional commentary regarding its bitcoin strategy at press time.
Stock Market Response to Acquisition News
GameStop stock advanced 6.33% during regular trading on May 1, closing at $26.53. eBay’s shares experienced a surge exceeding 10% in extended trading after the proposal became public.
The GME meme token also experienced substantial gains, climbing 54% in the hours immediately following the announcement.
As of publication, eBay’s board of directors had not released an official statement regarding the acquisition proposal.
Should the transaction close successfully, it would transform GameStop from a specialty video game retailer into a diversified e-commerce enterprise. The acquisition would also rank among the most significant corporate transactions involving a company maintaining a bitcoin treasury as part of its balance sheet strategy.
GameStop’s methodology invites comparisons to Strategy, which maintains 818,334 BTC and leverages capital markets to finance continued bitcoin accumulation, although GameStop is deploying its cryptocurrency-enhanced balance sheet for mergers and acquisitions rather than additional digital asset purchases.
