- GameSquare (GAME, Financial) completes a $5 million Ethereum purchase as part of its $100 million treasury strategy.
- The company targets risk-adjusted yields of 8-14% through a partnership with Dialectic’s Medici platform.
- Lucid Capital Markets exercises full over-allotment option, bringing total offering proceeds to $9.2 million.
GameSquare Holdings, Inc. (GAME) has made a strategic move into the cryptocurrency space by purchasing approximately 1,818.84 Ethereum (ETH) at a weighted average price of $2,749 per ETH, amounting to a $5 million investment. This acquisition is the initial phase of GameSquare's ambitious $100 million Ethereum treasury authorization strategy.
In an effort to maximize returns, GameSquare has partnered with Dialectic to utilize their proprietary Medici platform. This innovative platform leverages machine learning and automated optimization to target risk-adjusted yields of 8-14%, significantly surpassing the standard staking returns of 3-4%. This strategy aligns with GameSquare's vision to generate sustainable yields through decentralized finance protocols and the Ethereum ecosystem.
Additionally, GameSquare announced that Lucid Capital Markets, serving as the sole book-running manager for their public offering, has exercised its full over-allotment option. Lucid's purchase of an additional 1,263,157 shares increases the total gross proceeds of the offering to approximately $9.2 million, including $1.2 million from the over-allotment exercise.
The management of GameSquare has outlined plans to use the proceeds from their Ethereum strategy for various capital allocation options, such as further Ethereum acquisitions, a potential share repurchase program, or reinvestment in growth initiatives. This multi-faceted approach aims to create shareholder value through a bold and unconventional treasury management strategy in the digital asset space.
