GameSquare, a Nasdaq-listed entertainment company, has made a significant move by increasing its digital asset treasury management authorization from $100 million to $250 million. This decision was reached by the company’s Board of Directors due to the program’s increasing success, as stated in a recent press release.
An important development in this regard is GameSquare’s purchase of an additional 8,351.89 Ethereum (ETH) for $30 million, at a weighted average price of $3,592 per coin. This acquisition has brought the company’s total ETH holdings to 10,170.74 as of July 21, with the value now standing at approximately $38 million.
CEO Justin Kenna emphasized that the company’s crypto strategy is designed to complement GameSquare’s broader strategic growth plan and align with the increasing institutional adoption of Ethereum-based assets. He clarified that the goal is not to simply accumulate ETH but to leverage the company’s digital, media, and creative operations for innovation.
The treasury program not only strengthens GameSquare’s balance sheet but also opens up the potential for recurring cash flow from the rapidly evolving asset class. To manage and optimize this program, GameSquare has entered into a strategic partnership with industry experts such as Ryan Zurrer from Dialectic Group and Rhydon Lee from Goff Capital.
Furthermore, GameSquare has introduced a $10 million non-fungible token (NFT) strategy, making it one of the first public companies to diversify into digital art and collectibles. The company aims to focus on Ethereum-native digital assets, including culturally iconic digital art and collectibles, while utilizing DeFi protocols to unlock stablecoin yield.
In a bid to fund its Ethereum-based treasury strategy, GameSquare conducted a public offering in early July, aiming to raise $8 million in gross proceeds. Despite the current market conditions with ETH trading at $3,663, down 4.6% in 24 hours, the company remains optimistic about the long-term potential of its digital asset holdings.
In conclusion, GameSquare’s proactive approach towards digital asset treasury management and its innovative strategies regarding both Ethereum and NFTs position it as a forward-thinking player in the evolving landscape of cryptocurrency and blockchain technology.