GameSquare Holdings has completed a $5 million purchase of Ethereum (ETH), acquiring 1,818.84 ETH at a weighted average price of $2,749 per token. This marks the beginning of the company’s $100 million Ethereum-focused treasury strategy, which aims to integrate cryptocurrency into its financial management approach.
GameSquare Ethereum Treasury Strategy
The purchase of Ethereum is the first deployment under GameSquare’s broader strategy to build a crypto-native treasury. With a total authorization of $100 million, the company plans to use Ethereum assets to generate sustainable returns through decentralized finance (DeFi) protocols and Ethereum ecosystem assets. GameSquare is leveraging Medici, a platform from Dialectic, known for its machine learning and risk management capabilities.
Medici’s platform will allow GameSquare to optimize its investments and target yields of 8% to 14%, which are considerably higher than typical Ethereum staking returns of 3% to 4%. According to GameSquare CEO Justin Kenna, the company is partnering with leaders in decentralized finance to activate this strategy and strengthen its financial position.
Kenna mentioned that GameSquare is focused on targeting risk-adjusted yields that are well above current market standards. Concurrently, once fully implemented, GameSquare plans to use the capital generated through its Ethereum treasury strategy for further ETH purchases, share repurchases, and reinvestment into the company’s growth initiatives
Public Offering Boosts Company’s Funds
In addition to the Ethereum purchase, GameSquare has announced the successful exercise of an over-allotment option in its recent public offering. The exercise, led by Lucid Capital Markets, generated an additional $1.2 million, bringing the total gross proceeds to approximately $9.2 million.
This capital injection offers a boost to the financial strength of the company and reinforces ongoing ETH treasury strategy progress.
The sale of shares offered by GameSquare during its public offering was priced in a way that the firm was able to raise considerable capital and at the same time keep its eyes on the long-term growth. The over-allotment option was exercised exhaustively, and it shows the level of investor trust in the strategy and its future returns in GameSquare.
SharpLink Gaming and Bit Digital Expand Ethereum Holdings
GameSquare is not the only company in the industry to approach Ethereum as a treasury project, as more businesses are boosting their Ethereum reserves. An example is SharpLink Gaming, which has been pursuing its aggressive approach of Ethereum hoarding, having recently spent $19.2 million purchasing 7,689 ETH. With this acquisition, SharpLink now possesses more than 205,000 ETH, becoming the largest publicly traded Ethereum owner.
SharpLink Gaming will also stake all of its Ethereum in staking and restaking protocols to earn a yield. Similarly, Nasdaq-listed Bit Digital has moved to concentrate fully on Ethereum, selling off all its Bitcoin holdings to purchase ETH.
The firm issued a public offering worth $172 million, which was utilized entirely to buy Ethereum. This switch between Bitcoin and Ethereum also highlights the growing corporate interest in ETH as a treasury asset as Bit Digital now possesses more than 100,000 ETH.
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary .
With a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets.
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