GameSquare Launches $100 Million Ethereum Treasury Strategy for 8-14% Yields

GameSquare, a Nasdaq-listed media and entertainment group, has announced a significant strategic move by launching an Ethereum (ETH) treasury strategy. The company has successfully raised $8 million through a public offering, which will be used to initiate a $100 million Ethereum treasury. This treasury aims to generate high yields and promote institutional adoption of cryptocurrency. The board of the company has approved up to $100 million in Ethereum investments over time, indicating a long-term commitment to this strategy.

The treasury strategy is backed by a strategic alliance with Dialectic, a leading crypto investment firm. This partnership will leverage Dialectic’s Medici platform, which utilizes artificial intelligence and risk controls to optimize yield. The goal is to achieve on-chain yields ranging from 8% to 14% using Ethereum. This initiative not only seeks to generate substantial returns but also aims to deepen GameSquare’s expertise in decentralized finance (DeFi), pursue new revenue streams, and strengthen the company’s balance sheet.

GameSquare’s CEO, Justin Kenna, expressed confidence in the move, stating that it reflects the support of high-quality investors and leaders in the DeFi space. Kenna emphasized that the partnership with Dialectic will enable GameSquare to generate real, on-chain yield while expanding its capabilities in decentralized finance. The Ethereum treasury strategy is part of GameSquare’s broader effort to integrate cryptocurrency into its financial operations. The company’s decision to allocate a significant portion of its treasury to Ethereum underscores its belief in the potential of blockchain technology and decentralized finance.

By leveraging the Medici platform, GameSquare aims to maximize returns while managing risks effectively. This strategic shift towards DeFi is not only about financial gains but also about positioning GameSquare as a forward-thinking company in the rapidly evolving digital asset landscape. The initiative could include investments in non-fungible tokens (NFTs) and stablecoins, further diversifying the company’s crypto portfolio. The $100 million Ethereum treasury strategy represents a bold bet on the future of Ethereum and decentralized finance, with the potential to yield significant returns and enhance GameSquare’s competitive edge in the market.

GameSquare has created a 45-day period that will enable the underwriters to purchase an additional 1.26 million shares. This alternative is an indicator of confidence in the offering, and it tends to dilute the shares held by the shareholders. The company’s treasury strategy aims at achieving 8-14 percent of annual returns, which is significantly higher than the standard ETH staking rates of 3-4 percent. The plan also considers the option of diversification of NFTs and stablecoins to increase returns.