GameStop's $55.5B eBay Bid Puts $368M Bitcoin at Risk in May 2026

GameStop CEO Ryan Cohen submitted a non-binding $55.5 billion offer to acquire 100% of eBay at $125 per share on Sunday, May 4, 2026, split evenly between cash and GameStop stock. The bid targets a company nearly four times GameStop's market cap and raises immediate questions about whether the company will sell its 4,710-BTC treasury to help fund the acquisition.

If the GameStop-eBay story is moving fast and you want to track what happens to the 4,710 BTC, Web Snack covers deals like this as they develop – straight to your inbox.

How GameStop Turned a Shrinking Retail Balance Sheet into a $9.4B Bitcoin-Backed War Chest

GameStop ended fiscal 2025 with $9.01 billion in cash, cash equivalents, and marketable securities, nearly double the $4.77 billion it held a year prior. The balance sheet grew through equity issuance and zero-coupon convertible debt, not operating performance: revenue fell 5.1% to $3.63 billion in fiscal 2025.

In May 2025, the company deployed approximately $500 million to purchase 4,710 BTC. By January 31, 2026, that position had dropped to $368 million in book value, a $131.6 million loss on digital assets for the year. Then in January 2026, GameStop transferred 4,709 of its 4,710 BTC to Coinbase Prime as collateral for an over-the-counter covered-call strategy, writing short-dated call options at strike prices between $105,000 and $110,000. The 10-K filed in March 2026 confirmed the coins were still held – but now recorded on the balance sheet as a "digital assets receivable," not a direct holding, because Coinbase Credit holds rehypothecation rights over the pledged coins.

Beginning February 4, 2026, GameStop quietly built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock.

$125 Per Share, Half Cash, Half Stock: Inside the Terms of the eBay Proposal

The $55.5 billion figure is based on eBay's most recently disclosed undiluted share count. The $125 per share offer represents a 46% premium to eBay's unaffected closing price on February 4 and a 20% premium to eBay's close of $104.07 on Friday, May 2. GameStop plans to fund the bid with its $9.4 billion in cash and liquid investments – which includes the $368 million BTC receivable – plus up to $20 billion in third-party financing backed by a commitment letter from TD Securities.

On CNBC Monday morning, Cohen described the eBay opportunity as "way more compelling than bitcoin" and declined to rule out liquidating GameStop's crypto holdings. "We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done," Cohen said. GameStop did not respond to a request for comment on its plans for the BTC position by press time.

What the eBay Bid Means for GameStop's Crypto Treasury and BTC Holders Watching the Trade

GameStop's May 2025 Bitcoin purchase followed the same template as Strategy (formerly MicroStrategy): treat BTC as a long-term reserve asset, hold through volatility. The eBay bid complicates that posture. Because Coinbase Credit holds rehypothecation rights over the 4,709 pledged coins, unwinding the position would require closing the covered-call structure before any sale. That's not a simple exit.

If Cohen sells the BTC to fund the acquisition, GameStop's crypto treasury experiment ends in under 12 months. If he keeps it, the encumbered position adds complexity to a deal structure already stretched: a $12 billion company targeting a $55.5 billion acquisition. eBay stock rose 12% on May 4. GameStop shares fell 7.73%.

Cohen's pitch to eBay's board: turn GameStop's roughly 1,600 U.S. stores into drop-off and shipping locations, run live sales broadcasts of eBay products from store floors, and deliver $2 billion in annualized cost savings within the first 12 months. He told the board he sees eBay as capable of becoming a meaningful rival to Amazon.

eBay Board Response, Proxy Fight Risk, and the Uncertain Fate of 4,710 BTC

EBay confirmed on Monday it received the proposal and stated it had no prior contact with GameStop before the offer arrived. Its board, along with financial and legal advisors, will review the offer and determine a course of action. No response timeline has been disclosed.

The offer remains non-binding, and a completed deal would still require full financing, regulatory clearance, and shareholder approval on both sides. Cohen has signaled he is prepared to take the bid directly to eBay shareholders – a proxy fight – if the board refuses to engage. Cohen would serve as CEO of the combined company. He owns approximately 9% of GameStop and draws no salary; his incentive is a recently structured compensation package that could award him stock options worth up to $35 billion if GameStop's market cap reaches $100 billion.

Until eBay's board responds, the fate of the 4,710 BTC – whether retained, unwound from Coinbase Prime, or sold outright – remains an open question.

The crypto treasury era may be ending for GameStop. Web Snack tracks when companies put digital assets to work as corporate fuel – subscribe to follow the story.

P.S. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and make independent decisions.