‘Big Short’ Investor Michael Burry Exits GameStop After eBay Bid

Michael Burry sold all of his GameStop locations on Monday following the company’s $55.5 billion eBay bid, which he said would put the company in debt beyond his imagination.

The “Big Short” Investor to be revealed trading Monday on his Substack, citing debt that he said did not fit the “Instant Berkshire” concept he bought in January. Burry said the deal could push GameStop’s lending past the limits any disciplined buyer would accept.

“Instant Berkshire’s strategy was not compatible with > 5x Debt / EBITDA, it was not good with an interest rate below 4.0x,” Burry wrote, adding that GME was his “first sale” since starting on the Substack platform.

Burry’s move comes as GameStop they follow unsolicited, non-binding $55.5 billion acquisition of eBay at $125 per share for a cash and stock split. The investment is based on $9.4 billion in cash and a $20 billion loan from TD Securities.

GameStop’s pivot from meme stock image to hardware company went through Cohen’s redesign of the inventory pages, backed by May 2025. to buy of 4,710 BTC about $500 million.

The company later he promised 4,709 of those coins to Coinbase as collateral for the trading process, leaving the property listed as a receivable rather than a permanent asset.

In early February, Cohen he explained The transaction process was not described as “more compelling than Bitcoin” and refused to block the withdrawal of the stash for payment. The Bitcoin The position is worth about $368 million, during the company’s Q4 resultsmaking it less than 1% of the eBay bid. The stash’s role in financing the deal has yet to be determined.

However, Burry insisted that he “supports the effort” behind Cohen’s plan to control the collection and resell it, admitting that “the eBay play is very clear” in the face of financial markets that bring rewards.

His doubts, meanwhile, were about money. Mass markets are approaching “can’t be pedestrians,” wrote Mr. Burry, describing the strategy as “well-clothed on the road to capitalist Hell” and arguing that Cohen should have followed Wayfair, with “its final 70% of delivery and warehousing,” as a clear competitor to Amazon.

Burry’s exit comes as “a chilling reminder that the eBay deal is a credit disaster and not a visionary move,” Ryan Yoon, senior analyst at Tiger Research, said. Decrypt.

“Even though Cohen talks about a market deal, Burry just finds it difficult and has decided to leave,” Yoon said. “Indeed, GME has always been more of a gamble than traditional funds, and this collapse only proves that once and for all.”

eBay confirmed that it had received the unsolicited offer on Monday and said it would “review carefully and consider” the offer, noting the importance of GameStop and the company’s ability to offer a deal.

eBay shares are they are currently selling at $105.37, below the $125 offer, while GameStop is up to 1.3% per day, at $24.14, according to Google Finance data.