Development Company Says It Will Inject 70 Million Dollars into Ethereum, Price Plummeted Instantly!

GameSquare (GAME) raised 70 million dollars from its initial public offering to create an Ethereum (ETH) focused treasury, but stock prices experienced a sharp decline following the announcement.

GameSquare (GAME), a media company operating in the cryptocurrency and technology sector, successfully completed a 70 million dollar IPO to strengthen its Ethereum (ETH) focused treasury strategy. The company sold 46 million 666 thousand 667 shares at 1.50 dollars per share, with Lucid Capital Markets being the sole manager of the IPO.

The company’s CEO, Justin Kenna, stated in a press release, “This funding is a significant milestone for GameSquare. It will accelerate our goal of transforming traditional treasury management into a structure that provides high performance and sustainable cash flow.”

Following the news, GAME shares quickly lost 21% of their value, dropping from approximately 1.90 dollars to 1.50 dollars. The total decline over the past 24 hours reached 30%, and shares started trading at 1.63 dollars. GameSquare’s current market value stands at 49.4 million dollars.

With this move, GameSquare is competing with rivals like SharpLink Gaming to grow its Ethereum (ETH) focused treasury. SharpLink Gaming stands out as the company with the largest corporate-level ETH reserve, surpassing even the Ethereum Foundation with 280,706 ETH.

As of July 10, GameSquare holds approximately 6.2 million dollars worth of 1,818.84 ETH. The company had also completed another IPO worth 9.2 million dollars on the same day.

According to the latest data, Ethereum is trading at 3,648 dollars.