Top Highlights
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Massive Ethereum Initiative: GameSquare plans a $100 million Ethereum treasury aimed at achieving a 14% yield via DeFi strategies, demonstrating a strong belief in crypto’s potential.
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Stock Surge: Following the announcement, GameSquare’s shares rose nearly 60%, reflecting investor confidence in its strategic direction.
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Collaboration for Success: The treasury strategy is backed by a partnership with Dialectic, enhancing risk management and return optimization in the rapidly evolving DeFi landscape.
- Shift Toward Ethereum: Other firms, like SharpLink Gaming and Bit Digital, are also pivoting to Ethereum, further signifying a broader industry trend towards adopting crypto strategies for future growth.
GameSquare to Launch $100M Ethereum Treasury, Aiming for 14% Yields
Minneapolis-based GameSquare has announced an ambitious plan to establish a $100 million Ethereum treasury. The company targets yields between 8% and 14% through a decentralized finance (DeFi) strategy. This plan follows a recent press release detailing an underwritten public offering of over 8.4 million shares priced at $0.95 each. GameSquare expects to raise about $8 million before costs related to underwriting and commissions.
CEO Justin Kenna highlighted the importance of this initiative. He stated, “Today’s announcement reflects the confidence of a proven group of high-quality investors and leaders in decentralized finance.” GameSquare aims to use the funds to acquire more Ethereum and explore share repurchases and growth initiatives.
Additionally, GameSquare has partnered with Dialectic, a crypto-native capital management firm. This collaboration focuses on utilizing machine learning and robust risk controls to maximize returns. Kenna noted, “We’ve partnered with one of the world’s top crypto investment firms.”
The structure of this Ethereum treasury might also include various yield-generating strategies within the ecosystem. GameSquare plans to explore options such as stablecoins and NFTs to enhance returns while diversifying its portfolio.
In response to the announcement, GameSquare’s share price surged nearly 60%. According to Google Finance, the stock opened at $0.99, peaked at $1.69, and closed at $1.54.
Other firms are also embracing Ethereum. SharpLink Gaming recently reported adding over 7,600 ETH, valued at $19.2 million, to its portfolio. CEO Sam Tabar of Bit Digital highlighted the growing belief in Ethereum’s programmable capabilities and staking models, stating this transition includes over 100,000 ETH.
As more companies shift toward Ethereum-based strategies, the market reflects a growing confidence in the cryptocurrency’s potential. With GameSquare’s innovative approach, the company positions itself at the forefront of the DeFi movement, seeking to redefine how businesses engage with digital assets.
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