GameSquare, a Nasdaq-listed company, has approved a significant investment in Ethereum. The board of directors has given the green light for a phased investment of up to $100 million in ETH. This investment is part of the company’s new Ethereum-focused treasury vehicle, which aims to generate returns for the company.
$100 Million ETH Acquisition
The entertainment company experienced a notable stock increase of 58.76% following the announcement of a $100 million investment strategy in Ethereum. The board approved phased investments targeting yields of 8-14% through decentralized finance strategies, including lending, yield farming, and NFT diversification.
To support this initiative, GameSquare raised $8 million through a public offering of 8.4 million shares at $0.95 each, primarily for the purchase of Ethereum. In partnership with Dialectic, the company will utilize the Medici platform, which employs artificial intelligence and risk controls to optimize returns exceeding typical Ethereum staking yields.
CEO Justin Kenna emphasized the strategy’s focus on financial flexibility, which will also facilitate share repurchases and growth initiatives. While the substantial stock surge reflects strong investor confidence, the firm remains alert to associated risks, including smart contract vulnerabilities and regulatory scrutiny. The offering, managed by Lucid Capital Markets, includes a 45-day option for an additional 1.26 million shares.
Ethereum Sees Surging Global Embrace
In recent years, many companies have been adding to or reallocating their investment portfolios by shifting their focus to alternative cryptocurrencies. GameSquare’s investment in Ethereum is part of this trend, as companies seek to capitalize on the growth potential of other digital assets.
In early June, Société Générale-Forge, a leading French bank, unveiled plans to debut on the Ethereum blockchain. Similarly, publicly traded digital asset company Bit Digital recently announced that it is shifting its focus from traditional Bitcoin mining operations to concentrate entirely on Ethereum staking.
The company also announced a $150 million public offering to fund its transition from Bitcoin mining to Ethereum staking and treasury asset management. In its latest announcement on Monday, the platform revealed that it has swapped its entire treasury from Bitcoin to Ethereum.
