GameSquare acquires $5 million in ethereum for treasury strategy

FRISCO, TX - GameSquare Holdings, Inc. (NASDAQ:GAME), a gaming company with an $84.5 million market cap that has seen its stock surge over 160% year-to-date, announced Thursday it has purchased $5 million worth of Ethereum, acquiring approximately 1,818.84 ETH at a weighted average price of $2,749 per ETH. According to InvestingPro data, the company’s stock has shown significant momentum recently, though it faces some financial challenges.

The acquisition represents the first deployment under the company’s recently authorized $100 million Ethereum treasury program. GameSquare also reported that Lucid Capital Markets has exercised its full over-allotment option for the company’s public offering, bringing total gross proceeds to approximately $9.2 million. This capital raise comes as the company’s current ratio stands at 0.57, indicating potential liquidity challenges highlighted by InvestingPro’s analysis.

"This marks an inflection point in GameSquare’s strategic evolution as we activate our Ethereum-native treasury strategy," said Justin Kenna, CEO of GameSquare.

The company stated its ETH-focused treasury program aims to generate sustainable yield through decentralized finance protocols and Ethereum ecosystem assets. According to the press release, GameSquare is partnering with Dialectic and using its Medici platform to target yields of 8-14%, compared to current staking benchmarks of 3-4%.

GameSquare indicated that once fully implemented, capital generated from this strategy may support additional ETH purchases, fund a potential share repurchase program, or be reinvested in growth initiatives.

The company describes itself as a media, entertainment, and technology company focused on connecting brands with Gen Z, Gen Alpha, and Millennial audiences through its platform, which includes FaZe Clan Esports. Financial data from InvestingPro shows the company achieved 77% revenue growth in the last twelve months, though it operates with a modest 15.3% gross margin and reported negative EBITDA of $24.1 million. Discover more insights and 14 additional ProTips about GameSquare in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information in this article is based on a company press release statement.

In other recent news, GameSquare Holdings, Inc. announced the suspension of its at-the-market offering prospectus, indicating no sales of common stock will occur under the current agreement unless a new prospectus is filed with the SEC. The company also revealed plans for an underwritten public offering of common stock, subject to market conditions, with Lucid Capital Markets as the sole book-running manager. This move is part of a shelf registration statement effective since June 2025. Additionally, GameSquare has partnered with Dialectic to implement a strategic Ethereum yield strategy, aiming for yields of 8-14%, which surpasses current benchmarks. This initiative includes appointing Ryan Zurrer and Rhydon Lee to its advisory committee to bolster its digital asset strategy. In another strategic move, GameSquare Media has launched a unified gaming ad platform, consolidating its media solutions to enhance targeted advertising for gaming publishers and brands. This platform will work closely with Esports.gg and aims to expand GameSquare’s direct advertising capabilities within the gaming industry.

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