GameSquare, a media and entertainment firm, has publicly announced its intention to fund a new Ethereum (ETH)-based treasury strategy. The company’s board has approved an allocation of $100 million to be invested in phases as part of this initiative.
In a statement released on Tuesday, GameSquare detailed its plans for an underwritten public offering designed to raise $8 million in gross proceeds. This funding will bolster the company’s ETH fund management strategy, which is being developed in collaboration with strategic partner Dialectic.
Justin Kenna, CEO of GameSquare, emphasized, “This new treasury management strategy enhances our financial flexibility and allows us to support a defined capital allocation plan that is focused on pursuing additional ETH asset purchases, funding potential share repurchases and reinvesting in our growth initiatives.”
The newly unveiled ETH strategy aims for yields between 8-14%, which is markedly higher than the standard ETH staking returns that typically range from 3-4%. The plan could also extend into NFTs and stablecoins to enhance overall returns.
Today, we announced the pricing of our underwritten public offering to accelerate our Ethereum treasury strategy.Full release: https://t.co/9Bz1LVw1N1 pic.twitter.com/WQk5pgZjJD
— GameSquare Holdings Inc. (@GSQHoldings) July 8, 2025
GameSquare Strategy Applies Multi-Layered Risk Management Protocols
The company indicated it will utilize an ETH-focused yield generation strategy through Dialectic’s Medici platform. This approach leverages machine learning models, automated optimization, and multi-layered risk controls to pursue risk-adjusted returns.
Kenna further noted, “Our crypto strategy reinforces our existing foundation in gaming, technology, and media, and is aligned with the broader trend of institutional adoption of digital assets.”
This strategy represents a high-risk, high-reward approach that significantly deviates from traditional corporate treasury management practices. While the potential for greater returns is appealing, it also subjects GameSquare to considerable volatility in the cryptocurrency market and evolving regulatory conditions.
GameSquare Opens 45-Day Window for Underwriters
Furthermore, GameSquare has launched a 45-day option period for underwriters to acquire additional shares, reflecting an increase in confidence. This option could lead to the purchase of up to 1.26 million additional shares, which may contribute to further dilution of existing shares.
A financial strategist at Stock Titan remarked that this move signifies a speculative shift for GameSquare, linking its financial stability more closely with the dynamics of the cryptocurrency market. The analyst cautioned that this significant exposure to crypto may alter the company’s risk profile and could indicate underlying challenges within its core business driving this unconventional treasury approach.
Following the announcement, shares of GameSquare Holdings (GAME) rose to close at $1.54 on Tuesday, representing a 58% increase amid vigorous buying activity.
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