Ethereum investment plan sparks stock surge
GameSquare Holdings (Nasdaq: GAME) saw its stock soar by 58.76% on Tuesday, closing at $1.54, after the company announced an ambitious Ethereum treasury initiative. In after-hours trading, the stock added another 6.49%, driven by investor excitement over the crypto-focused strategy.
$100 million Ethereum treasury gets board approval
The company revealed that its board of directors has approved an Ethereum treasury strategy of up to $100 million, which will be implemented over time through staged investments. The move positions GameSquare among a growing number of companies integrating crypto assets into corporate treasuries, particularly Ethereum (ETH), the world’s second-largest cryptocurrency by market cap.
GameSquare plans to deploy this capital using Medici, a platform developed by investment partner Dialectic, with targeted annual yields between 8% and 14%. The company also indicated potential involvement in additional Ethereum ecosystem strategies, including stablecoins and NFTs, to boost yield opportunities.
$8 million public offering fuels crypto treasury plans
To fund the initial phase of its Ethereum strategy, GameSquare announced a public offering of 8.42 million shares of common stock at $0.95 per share, aiming to raise approximately $8 million. The offering includes an option for underwriter Lucid Capital Markets to purchase up to 1.26 million additional shares at the same price.
GameSquare stated that a portion of these proceeds will be directed toward building the Ethereum treasury, while ensuring sufficient working capital remains for ongoing operations.
Ethereum finds a place in corporate treasuries
While many companies have adopted Bitcoin for treasury reserves, some are now shifting focus to Ethereum. Earlier this week, affiliate marketing firm SharpLink Gaming disclosed it holds 205,634 ETH, showcasing a rising trend in Ethereum adoption for institutional use.
At the time of GameSquare’s announcement, ETH was trading at $2,594, up 2.31% in the past 24 hours.
