GameSquare Stock Soars 58% on $100M Ethereum Treasury Plan

GameSquare Stock Soars 58% on $100M Ethereum Treasury Plan

Following SharpLink Gaming (NASDAQ: SBET), Nasdaq-listed GameSquare unveiled its $100 million Ethereum treasury plan on July 8, resulting in a 58% increase in its stock price. ETH as a Treasury vehicle is gaining traction these days due to significant institutional demand, ETF inflows, and general ecosystem expansion.

GameSquare’s Ethereum Treasury Announcement

On July 8, the Minneapolis-based digital media corporation unveiled its ETH Treasury intentions, and GameSquare’s share price increased by 58% amid robust purchasing activity.

GameSquare declared on Tuesday that 8,421,054 shares of its ordinary stock would be offered for an underwritten public offering for $0.95 apiece. The total proceeds from the offering are projected to be around $8.0 million, before subtracting underwriting discounts, commissions, and other offering expenses.

Strategic Partnership with Dialectic

The business claimed that the profits would be used to execute their $100 million Ethereum treasury plan in collaboration with Dialectic, a crypto-native capital management firm. Justin Kenna, CEO of GameSquare, stated, “We’ve partnered with one of the world’s top crypto investment firms to generate real on-chain yield, deepen our expertise in decentralized finance, pursue new revenue streams, and strengthen our balance sheet.”

Leveraging the Medici Platform

To implement its Ethereum treasury strategy, the business will use Dialectic’s unique Medici platform, which uses machine learning, enhanced risk controls, and automated optimization to provide higher risk-adjusted returns. With payouts ranging from 8% to 14%, the approach seeks to surpass typical ETH staking benchmarks, which now yield 3-4%.

Institutional Ethereum Treasury Trends

SharpLink Gaming’s Ethereum Accumulation

In an attempt to become the MicroStrategy of Ethereum holdings, SharpLink Gaming has started the institutional race to stack Ethereum. The company has now increased its holdings by 205,634 ETH. The additional yield-generating capability of ETH through staking is what draws businesses to set up an ETH treasury.

Bit Digital’s Strategic Pivot

Bit Digital, a Nasdaq-listed company, has shifted its focus to Ethereum staking by selling all of its Bitcoin assets. With mining expenses rising, the firm has positioned itself to achieve higher payouts through ETH staking.

Ethereum ETF Inflows and Institutional Buying

In contrast, institutional purchases have increased in tandem with Ethereum ETF inflows over the last month. BlackRock iShares Ethereum Trust (ETHA) has received the majority of the inflows throughout this time and presently owns 1.826 million ETH in its portfolio.

The Growing Popularity of Ethereum as a Treasury Asset

With more corporate and institutional engagement, Ethereum‘s popularity as a long-term asset class is growing. This would result in a critical base formation and a prolonged ETH price increase moving forward. ETH is now consolidating near $2,500, with investors anticipating the next significant breakthrough to $3,000 and beyond.

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