GameSquare finalizes plan to accumulate 100 million USD in Ethereum, stock surges
#GameSquare Holdings (NASDAQ: GAME), a media and entertainment company, will build a reserve fund of Ethereum (ETH) up to 100 million USD. The company has issued shares to raise 8 million USD, all of which will be used to purchase ETH.
Ethereum Treasury Strategy
The treasury of $ETH of GameSquare will be built on Dialectic's Medici platform, with an expected interest rate of 8% to 14% – much higher than traditional ETH staking. The board of directors has approved a maximum allocation of 100 million USD to ETH in phases, while maintaining enough capital for core business operations. GameSquare also intends to diversify into stablecoins and NFTs within the Ethereum ecosystem.
Immediately following this news, GAME stock surged 58.76% to 1.54 USD. Although the company's market capitalization is only about 60.25 million USD, lower than the expected treasury size, this decision has created a significant positive effect.
GameSquare chooses Ethereum over Bitcoin, leveraging ETH's dynamic features for staking, lending, or collateralization to generate profits. In addition to GameSquare, SharpLink Gaming has also increased its ownership of ETH to 205,634 ETH. The current trading price of ETH is around 2,609 USD. #anhbacong