Gamestop Bids $56B for Ebay, Leveraging $519M Bitcoin Treasury
Key Takeaways: Gamestop ended fiscal 2025 with nearly $9 billion in total cash and investments, a war chest built through years of cost-cutting and, more recently, a deliberate pivot into digital assets. The bitcoin angle sits at the center of Gamestop’s modernized balance sheet as the company acquired 4,710 BTC for approximately $500 million during fiscal 2025, with 4,709 of those coins pledged as collateral in a covered-call strategy. The position has since grown to approximately $519 million and forms part of the balance sheet underpinning the Ebay proposal. The approach mirrors, in spirit if not in scale, the model popularized by Strategy, which holds 818,334 BTC and has used preferred equity issuance and capital markets access to fund aggressive bitcoin accumulation. Gamestop’s variant is distinct in that, rather than accumulating further, the company is leveraging its non-traditional balance sheet to pursue an M&A ambition at a scale that would have seemed implausible three years ago. Gamestop shares closed at $26.53 on May 1, up 6.33%, as investors priced in the transformational possibility, while Ebay’s stock surged more than 10% in after-hours trading (as seen above) following the reports. The GME meme coin mirrored the excitement, rising 54% within hours of the news breaking. Ebay’s board has not yet publicly responded to the proposal.The Bitcoin Connection
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