GameSquare has announced a significant strategic move by unveiling plans for a $100 million Ethereum treasury, aiming to achieve a 14% yield through a decentralized finance (DeFi) strategy. This initiative is part of the company’s broader efforts to enhance its financial flexibility and support a clear capital allocation plan.
The Minneapolis-based firm has priced an underwritten public offering of 8,421,054 shares of its common stock at $0.95 per share, expected to raise approximately $8 million in gross proceeds before deducting underwriting discounts, commissions, and other offering expenses. The funds raised will be used to kickstart the $100 million Ethereum treasury strategy, which targets yields between 8% and 14%. This yield range is notably higher than the current 3% to 4% returns offered by regular ETH staking.
GameSquare CEO Justin Kenna emphasized the confidence of high-quality investors and leaders in decentralized finance, stating that the plan will increase the company’s financial flexibility and support a clear capital allocation plan. This plan includes acquiring more ETH, funding potential share repurchases, and reinvesting in growth initiatives. The ETH treasury will be supported by a strategic alliance with Dialectic, a crypto-native capital management firm that uses machine learning, strong risk controls, and automated optimization to deliver better risk-adjusted returns. Lucid Capital Markets is serving as the sole underwriter for the plan.
Kenna further explained that the partnership with Dialectic will generate real, on-chain yield while deepening the company’s expertise in decentralized finance, pursuing new revenue streams, and strengthening its balance sheet. The treasury may also include other yield-generating strategies in the Ethereum ecosystem, such as using stablecoins and NFTs to increase and diversify returns.
Following the announcement, GameSquare’s share price surged by nearly 60%. The stock opened at $0.99, reached a year-high of $1.69, and closed at $1.54. This significant increase in share price reflects the market’s positive response to the company’s strategic move into the Ethereum treasury.
GameSquare’s initiative comes at a time when several other firms are also shifting their focus to Ethereum-based strategies. SharpLink Gaming, the largest corporate holder of ETH, recently added 7,689 ETH worth $19.2 million to its portfolio, bringing its total reserves to 205,634 ETH. The company has committed these reserves to staking and restaking protocols. SharpLink has also introduced a new performance metric, ETH Concentration, which increased by 19% over the past three weeks.
Bit Digital, another company, has transitioned its treasury to Ethereum, accumulating over 100,000 ETH. This move followed a $172 million public equity raise and the sale of 280 BTC. CEO Sam Tabar highlighted the long-term belief in Ethereum’s programmable features and staking yield model, calling it the future of digital assets. These developments indicate a growing trend among companies to adopt Ethereum-based strategies, driven by the potential for higher yields and the programmable features of the cryptocurrency.
