Corporate Heavyweights Turn to Ethereum as Treasury Reserve Asset

More and more corporate heavyweights are recognizing the potential of Ethereum as a treasury reserve asset, with Nasdaq-listed GameSquare being the latest to jump on board.

On July 8, GameSquare announced in a press release that it has launched an Ethereum (ETH) treasury strategy, starting with an $8 million underwritten public offering. The majority of the capital raised will be directed towards Ethereum yield opportunities.

Looking ahead, GameSquare’s board has approved up to $100 million in ETH allocations, which will be deployed gradually while ensuring there is enough liquidity to support the company’s operations.

To maximize returns on its Ethereum holdings, GameSquare has partnered with Swiss crypto investment firm Dialectic and will be utilizing Medici, an automated Ethereum-native yield platform.

CEO Justin Kenna’s Perspective

GameSquare’s CEO, Justin Kenna, emphasized that this strategic shift aligns with the company’s focus on gaming, technology, and media industries. He highlighted the increasing institutional adoption of digital assets and emphasized that the new treasury strategy will provide financial flexibility and support a capital plan centered around accumulating ETH.

Industry Trends

GameSquare’s move is part of a larger trend of public companies turning to Ethereum for long-term reserves. Bit Digital, another Nasdaq-listed firm, recently divested its Bitcoin holdings in favor of increasing its ETH position.

SharpLink Gaming has also been actively accumulating Ethereum to build its own treasury reserve, becoming the world’s second-largest ETH holder after the Ethereum Foundation.

Market Impact

Following GameSquare’s announcement, its stock price surged by approximately 60%, showcasing strong investor support for the company’s strategic shift. This increased adoption of Ethereum is also translating into positive price action for the asset.

At the time of writing, Ethereum is trading around $2,625, marking a 2.8% increase in the past 24 hours and nearly 7% growth over the week. While gains have been modest, the current prices represent a significant recovery after a period of underperformance.