[Image: Andrii Sedykh/istockphoto]
Frisco-based GameSquare Holdings Inc., backed by Dallas Cowboys owner Jerry Jones and the Goff family, announced it has completed a $5 million purchase of Ethereum. The move is the first deployment under its board-approved allocation of up to $100 million to expand its crypto-based treasury management strategy.
The company said the plan is designed to generate risk-adjusted returns for its balance sheet through staged Ethereum investments while maintaining adequate working capital for its core business, which includes FaZe Clan Esports and one of North America’s largest gaming media networks.
GameSquare acquired about 1,818.84 ETH at a weighted average price of $2,749 per coin. Ethereum, the second-largest cryptocurrency by market capitalization after Bitcoin, was trading at approximately $2,825 per coin at 3:44 p.m. Central time on Thursday, July 10.
Justin Kenna
CEO Justin Kenna called the purchase “an inflection point in GameSquare’s strategic evolution.” He said the move activates what the company describes as an Ethereum-native treasury strategy designed to generate risk-adjusted yields of 8 to 14 percent, compared to the typical 3 to 4 percent for ETH staking.
The plan, announced Tuesday, includes partnering with Swiss-based Dialectic and investor Ryan Zurrer. GameSquare says it will use Medici, Dialectic’s proprietary platform, which combines machine learning, automated optimization, and layered risk controls to manage the crypto treasury.
The same day GameSquare announced the strategy, the company also priced its underwritten public offering, selling more than 8.4 million shares (or equivalents) at $0.95 each, for expected gross proceeds of about $8 million.
In Thursday’s announcement, the company confirmed that Lucid Capital Markets, the sole book-running manager, exercised its full over-allotment option, adding another 1.26 million shares to the deal. The final total was about $9.2 million in gross proceeds, before deducting offering expenses.
A full overallotment means the underwriter sold an additional 15 percent of shares on top of the base offering to meet increased investor demand.
“We’re encouraged by the support from a high-caliber group of investors and decentralized finance leaders who share our long-term vision,” Kenna said in the news release. “With a $100 million ETH authorization in place and momentum building, we are committed to executing a disciplined, forward-looking strategy.”
GameSquare said once fully implemented, the capital generated from the strategy could also support additional crypto purchases, share repurchases, or reinvestment in its gaming and media business.
In a statement on Tuesday, Kenna said the company’s crypto strategy reinforces GameSquare’s foundation in gaming, technology, and media, aligning with the broader trend of institutional adoption of digital assets.
He added that the partnership with crypto leaders like Dialectic’s Zurrer and Rhydon Lee of Goff Capital “is just getting started,” and he looks forward to updating investors on the “quick progress we are making.”
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