Nasdaq-listed entertainment company GameSquare has increased its digital asset treasury management authorization from $100 million to $250 million.
Notably, GameSquare has bought an additional 8,351.89 Ethereum (ETH) for $30 million, at a weighted average price of $3,592 per coin. As of 21 July, the company has 10,170.74 ETH. “With this most recent purchase, GameSquare’s Ethereum treasury holdings has increased to approximately $38 million,” the team announced.
According to CEO Justin Kenna, this crypto strategy “complements GameSquare’s broader strategic growth plan and aligns with the growing institutional adoption of Ethereum-based assets.”
He says that the company’s goal is not simply to enter a race of who can acquire the most ETH. Rather, Kenna claims, GameSquare aims to innovate and leverage its established digital, media, and creative operations.
Per GameSquare, targeted onchain yields of 8%-14% “significantly exceed the current ETH staking benchmarks” of 3%-4%.
That said, GameSquare is working to manage and optimize this treasury management program. For that purpose, it says, it has entered a strategic partnership with Ryan Zurrer of investment and building firm Dialectic Group and Rhydon Lee of Goff Capital, among others.
A dedicated digital asset investment committee is in charge of oversight and will report to the Board. They will review all allocations for compliance, security, and valuation integrity, the team claims. “The Company does not engage in related-party transactions and has strict internal controls in place for digital asset custody and liquidity management,” it adds.
GameSquare’s Board of Directors has also approved the launch of a $10 million non-fungible token (NFT) strategy.
Meanwhile, GameSquare announced a public offering to fund its Ethereum-based treasury strategy in early July, aiming to raise $8 million in gross proceeds. Meanwhile, ETH currently trades at $3,663, having decreased by 4.6% in 24 hours. The coin is also up 20% in a week, 66.5% in a month, and 5.6% in a year.
Therefore, GameSquare is “among the first public companies to include NFTs as part of a diversified digital asset strategy,” Kenna says. “This reflects the innovative approach to our treasury management initiatives.”
