GameSquare Holdings, traded as GAME on Nasdaq, experienced an impressive 60% boost in its stock price following an announcement that its board had greenlit a plan to develop a $100 million treasury rooted in Ethereum. Google Finance data indicates that shares of GAME escalated by 58.76% on Tuesday, closing at $1.54, and saw an additional increase of 6.49% in after-hours trading. The current market capitalization of GameSquare stands at $60.25 million.
The media and entertainment firm declared a public offering of 8.42 million shares of its common stock at $0.95 per share on Tuesday, anticipating to generate around $8 million in proceeds. Lucid Capital Markets, GameSquare’s underwriter, has been given the option to purchase up to 1.26 million additional shares at the same price as the public offering.
According to GameSquare’s official statement, the proceeds from this offering are set to fuel their newly-announced Ethereum-based treasury strategy. This treasury will be developed on Medici, a platform provided by their investment partner, Dialectic, aiming at yields between 8% and 14%.
The board of GameSquare has sanctioned an Ethereum allocation of as much as $100 million, which will be invested in stages, while also ensuring sufficient working capital for their operational business. The firm is considering other yield-generating strategies within the Ethereum ecosystem, including the use of stablecoins and non-fungible tokens.
In the current rush of corporates looking to amass Bitcoin treasuries, a select few have chosen Ethereum, the second-largest cryptocurrency. Recently, affiliate marketing company SharpLink Gaming, which also operates an Ether treasury, reported holding 205,634 ETH.
Over the past 24 hours, ETH has increased by 2.31% and is currently trading at $2,594.
Disclaimer: This article is intended for informational purposes only and should not be taken as legal, tax, investment, financial, or other advice. Any investment decisions should be made based on your own due diligence.
