GameSquare Launches ETH Treasury Program, Invests $5M in Ethereum
GameSquare Launches $100 Million ethereum Treasury Strategy
GameSquare’s Strategic Move into ethereum
GameSquare Holdings has initiated a significant $100 million strategy focused on ethereum, marking its entry into the cryptocurrency space with a $5 million acquisition of 1,818.84 ETH at an average price of $2,749. This investment represents the company’s first step towards incorporating digital currencies into its financial framework, particularly through decentralized finance (DeFi) avenues.
Partnership with Dialectic’s Medici Platform
To effectively manage its cryptocurrency treasury, GameSquare has teamed up with Dialectic’s Medici platform. This collaboration leverages machine learning technology to target yield rates ranging from 8% to 14%, which significantly surpasses the typical returns from ETH staking. According to CEO Justin Kenna, the objective is to achieve robust, risk-adjusted yields while reinvesting profits into further ETH acquisitions, share buybacks, and internal growth initiatives.
Recent Funding and Market Position
This ethereum purchase follows GameSquare’s recent public offering, which raised $9.2 million, including a fully exercised $1.2 million over-allotment led by Lucid Capital Markets. This additional capital enhances the company’s financial standing and accelerates its cryptocurrency strategy implementation.
Growing Trend Among Companies
GameSquare is joining a rising trend of companies adopting ethereum-centric treasury strategies. For instance, SharpLink Gaming recently invested $19.2 million in 7,689 ETH, increasing its total holdings to 205,000 ETH, making it the largest publicly traded holder of ethereum. Additionally, Bit Digital has completely divested its Bitcoin reserves, reallocating $172 million into ethereum, indicating a broader corporate shift towards ETH in treasury management.
Author Insights
About the Author
Alexander Stefanov
Reporter at Coindoo
Alexander is an experienced financial journalist with a passion for cryptocurrencies. With over eight years of experience covering the cryptocurrency, blockchain, and fintech sectors, he possesses a deep understanding of the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear perspective on the latest market developments and trends. Follow his work to stay updated on key industry topics.
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