GameSquare reports 7.84% annualized yield from onchain strategy

FRISCO, Texas - GameSquare Holdings, Inc. (NASDAQ:GAME), a gaming and entertainment company currently trading at $0.73 with a market capitalization of $72.76 million, announced Thursday its first month of results from its Ethereum (ETH) treasury strategy, reporting a 7.84% annualized yield for August. According to InvestingPro analysis, the company’s stock appears undervalued despite facing challenges with cash burn and operational efficiency.

The company, which launched its onchain yield program through Dialectic’s platform on August 1, reported ETH holdings of 15,731.07 as of August 31, valued at approximately $69.1 million based on an ETH price of $4,391.91. This crypto treasury strategy comes as the company faces financial challenges, with InvestingPro data showing a concerning current ratio of 0.43, indicating potential liquidity constraints.

GameSquare generated 101 ETH in monthly yield during August, outperforming Coinbase’s staking yield of 1.89% APY by more than four times, according to the company.

The firm also owns NFTs with a cost basis of approximately $7.15 million. Its NFT yielding program, managed by 1OF1 AG, commenced on September 1 and is expected to contribute to overall yields.

"We expect our yield to expand in the coming months as the program matures, we experience the benefits of compounding, and our NFT yielding strategy begins to generate returns," said Justin Kenna, CEO of GameSquare, in a press release statement.

The company reported total onchain assets valued at $76.2 million as of August 31, representing a net asset value of $0.78 per share based on 98,361,398 outstanding shares.

GameSquare also purchased 1,402.52 ETH on August 1 at a price of $3,565 per ETH, adding to its holdings.

To increase transparency, the company launched holdings.gamesquare.com, providing real-time updates on the value of its onchain assets.

GameSquare describes itself as a media, entertainment, technology and onchain treasury company that connects brands with younger audiences through gaming platforms including FaZe Clan. The company generated revenue of $93.38 million in the last twelve months, though with a modest gross profit margin of 17.64%. For deeper insights into GameSquare’s financial health and growth potential, including 8 additional key ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, GameSquare Holdings reported its Q2 2025 earnings, showing a revenue decline of 11% year-over-year, bringing the total revenue to $15.8 million. Despite the revenue drop, the company managed to reduce its adjusted EBITDA loss to $3.5 million from $4.2 million in the previous year. These financial results indicate a mixed performance for the company in the second quarter. The earnings report did not mention any mergers or acquisitions. Analysts have not provided any recent upgrades or downgrades for GameSquare Holdings. There were no other significant company developments reported alongside the earnings release. These recent developments provide insight into the financial health and operational adjustments of GameSquare Holdings.

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