GameSquare has announced plans to launch a $100 million Ethereum treasury, targeting a 14% yield through a decentralized finance (DeFi) strategy. The news has caused the company’s shares to surge by nearly 60%. In a press release on July 8, the Minneapolis-based firm revealed that it has priced an underwritten public offering of 8,421,054 shares of its common stock at $0.95 per share. The offering is expected to raise approximately $8 million in gross proceeds, which will be used to kickstart the $100 million Ethereum treasury strategy. The initiative aims to generate yields between 8% and 14%, which is higher than the current 3% to 4% returns offered by regular ETH staking. GameSquare CEO Justin Kenna stated that the announcement reflects the confidence of a proven group of high-quality investors and leaders in decentralized finance. He added that the plan will increase the company’s financial flexibility and support a clear capital allocation plan focused on acquiring more ETH, funding potential share repurchases, and reinvesting in growth initiatives. The ETH treasury will be supported by a strategic alliance with Dialectic, a crypto-native capital management firm that uses machine learning, strong risk controls, and automated optimization to deliver better risk-adjusted returns. Lucid Capital Markets is also serving as the sole underwriter for the plan. Kenna further explained that the treasury may include other yield-generating strategies in the Ethereum ecosystem, such as using stablecoins and NFTs to increase and diversify returns. Following the announcement, GameSquare’s share price jumped by nearly 60%, opening at $0.99, surging to a year-high of $1.69, before closing at $1.54. This news comes as SharpLink Gaming, the largest corporate holder of ETH, added 7,689 ETH worth $19.2 million to its portfolio, bringing its total reserves to 205,634 ETH. Other companies, such as Bit Digital, have also shifted their treasuries to Ethereum, with CEO Sam Tabar stating that the move shows a long-term belief in the cryptocurrency’s programmable features and staking yield model.
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