GameSquare Stock Jumps Nearly 60% After $100 Million Ethereum Treasury Plan Gets Green Light
GameSquare Holdings (NASDAQ: GAME) saw its shares soar nearly 60% on Tuesday following the announcement of a bold new initiative to build a $100 million Ethereum-based corporate treasury. The move positions the media and entertainment company as one of the few publicly traded firms embracing Ethereum as a core financial strategy.
According to Google Finance, GameSquare’s stock closed at $1.54, up 58.76% for the day, with an additional 6.49% boost in after-hours trading. The company’s market capitalization now stands at approximately $60.25 million.
A Strategic Pivot Toward Ethereum
The surge in investor interest came after GameSquare revealed that its board had approved a staged allocation of up to $100 million in Ethereum (ETH). The initiative will be managed through Medici, a platform developed by investment partner Dialectic, with a projected annual yield of 8% to 14%.
The company emphasized that the treasury will be built over time, ensuring that it retains sufficient working capital to maintain regular operations. In addition to holding ETH, the strategy may also explore yield-generating opportunities using stablecoins and NFTs within the Ethereum ecosystem.
GameSquare also launched a public offering of 8.42 million shares at $0.95 per share, aiming to raise approximately $8 million. Underwriter Lucid Capital Markets has the option to purchase up to an additional 1.26 million shares at the same price. The funds raised will be directed toward kickstarting the Ethereum treasury strategy.
Ethereum Gains Momentum in Corporate Finance
While most corporate crypto treasuries have leaned toward bitcoin, Ethereum is gaining ground as an alternative. Earlier this week, SharpLink Gaming disclosed that it holds over 205,000 ETH, highlighting a growing trend among companies to explore Ethereum as a store of value and yield-bearing asset.
ETH itself saw a modest increase of 2.31% over the past 24 hours, trading at $2,594, according to data.