Bitcoin News
By Julie Binoche
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Debt Commitment Hangs on Credit Rating. The financing plan relies on a $20 billion debt commitment from TD Bank. Sounds big.
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From Bitcoin Treasury to Consumer Acquisitions. Cohen's pivot away from crypto caught people off guard.
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What Happens Next. Cohen has options. None of them easy.
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The e-commerce giant's board tossed out GameStop's $56 billion takeover proposal this week, calling it "neither credible nor attractive" in a statement that left little room for…
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Cohen isn't backing down, though. He's weighing a direct appeal to eBay shareholders through a special meeting, bypassing the board entirely if they won't come to the negotiating…
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That commitment only kicks in if the merged company keeps an investment-grade credit rating after the deal closes.
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eBay also pointed to shareholder dilution. Cohen's offer leans heavily on equity, which means current eBay shareholders would see their stakes watered down in a combined entity…
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Last summer, GameStop bought 4,710 BTC as part of a broader treasury strategy, joining companies like MicroStrategy in betting on Bitcoin as a long-term store of value.
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The transfer of GameStop's BTC to Coinbase Prime fueled rumors that a sale is coming. Coinbase Prime caters to institutional clients looking to execute large trades with minimal…
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GameStop built that $8.8 billion reserve through a series of equity raises that diluted existing shareholders but left the company flush with cash.
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Read also: BTC Forms First Golden Cross Since 2023 as MVRV Ratio Backs Bull Case
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Cohen's willingness to dump the Bitcoin stash marks a clear break from the crypto-friendly image GameStop cultivated.
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He can walk away, which seems unlikely given the public nature of the bid. He can try to negotiate with eBay's board, though their rejection letter didn't leave much wiggle room.
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eBay shareholders would have to weigh Cohen's promises against the board's warnings about credit downgrades and operational risks.
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The Bitcoin angle adds another wrinkle. If Cohen sells GameStop's BTC holdings and uses the proceeds to fund a tender offer, he'd be betting that eBay shareholders value cash in…
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