GameSquare prices $70 million public offering to boost ethereum holdings

FRISCO, Texas - GameSquare Holdings, Inc. (NASDAQ:GAME) announced Thursday the pricing of its underwritten public offering of 46,666,667 shares of common stock at $1.50 per share, expected to generate approximately $70 million in gross proceeds before deductions. The stock, which has seen a remarkable 184% surge over the past six months according to InvestingPro data, currently trades at $2.31 per share. InvestingPro analysis reveals this offering comes at a crucial time, as the company faces significant cash burn challenges.

The gaming and entertainment company plans to use most of the proceeds to significantly increase its Ethereum position as part of its treasury strategy, according to a company press release. The offering includes a 15% overallotment option which, if fully exercised, would bring the total raise to approximately $80.5 million. With a current market capitalization of $101.2 million and an EBITDA of -$24.1 million in the last twelve months, this capital raise represents a significant move for the company.

"This raise marks a pivotal milestone for GameSquare," said Justin Kenna, CEO of GameSquare. "It enables us to move with speed and scale to continue to build what we believe is one of the most ambitious Ethereum treasury strategies in the public markets."

The company stated this offering, combined with $9.2 million raised last week, would bring total gross proceeds across both offerings to over $90 million. GameSquare plans to deploy these funds into Ethereum acquisition strategies developed with Dialectic, a crypto-native capital management firm.

Lucid Capital Markets is acting as the sole book-running manager for the offering, which is expected to close on or about July 18, subject to customary closing conditions.

The offering is being conducted pursuant to a shelf registration statement filed with the Securities and Exchange Commission on March 4, 2025, and declared effective on June 4, 2025.

GameSquare describes itself as a next-generation media, entertainment, and technology company focused on connecting brands with younger audiences through gaming and digital media. InvestingPro analysis shows the company achieved 77% revenue growth in the last twelve months, though it operates with moderate debt levels and faces profitability challenges. For deeper insights into GameSquare’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, GameSquare Holdings Inc. has announced a public offering of common stock, with Lucid Capital Markets as the sole book-running manager. This offering is subject to market conditions, and the company has not specified the size or terms. Concurrently, GameSquare has initiated a $100 million Ethereum treasury strategy, acquiring $5 million worth of Ethereum as the first step. The strategy, developed in collaboration with Dialectic AG, aims to generate on-chain yields of 8-14%, potentially increasing annual profitability by over $10 million. GameSquare plans to utilize these profits for additional Ethereum purchases, potential share repurchases, and growth initiatives. The company has also announced a conference call to discuss the Ethereum treasury strategy, featuring CEO Justin Kenna and other key figures. Additionally, Lucid Capital Markets has exercised its full over-allotment option for GameSquare’s public offering, bringing total gross proceeds to approximately $9.2 million. These developments highlight GameSquare’s strategic focus on leveraging decentralized finance protocols and Ethereum ecosystem assets for sustainable yield.

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