GameSquare Completes First $5M Ethereum Purchase Under $100M Treasury Plan

GameSquare has bought $5 million worth of Ethereum as part of a new crypto-focused treasury plan. The purchase included about 1,818.84 ETH, priced at an average of $2,749 per coin.

Notably, the purchase marks the first step in the Nasdaq-listed company’s $100 million initiative to build an Ethereum-based treasury. It plans to explore innovative capital management strategies using crypto and blockchain tools.

GameSquare Taps Dialectic for ETH Treasury Management

GameSquare is working with Dialectic, a crypto investment firm, to guide its new Ethereum treasury strategy. Dialectic brings experience in blockchain finance and asset management. Its role is to help GameSquare structure and manage its ETH holdings effectively.

To do this, Dialectic will use its Medici platform, which is designed for digital asset management. The platform combines automation, machine learning, and multiple layers of risk control. These tools allow Medici to monitor performance and adjust strategies in real time.

GameSquare says it aims to generate annual returns of between 8% and 14% through this system. That target is significantly higher than what most Ethereum staking platforms offer today. Currently, regular staking yields range between 3% and 4% per year.

Meanwhile, instead of relying solely on staking, GameSquare plans to deploy its ETH through decentralized finance (DeFi) protocols. These protocols offer options like lending, liquidity provision, and automated yield strategies. The company believes this approach will generate more consistent and higher income.

More Capital Raised for ETH Treasury

In a separate update, the company said it raised more money from a recent public stock offering to support its Ethereum strategy. Lucid Capital Markets, which led the offering, exercised its over-allotment option and bought an additional 1,263,157 shares, raising total proceeds to about $9.2 million.

According to the company, the funds will back its Ethereum treasury plan and other future initiatives. CEO Justin Kenna noted that the Ethereum move reflects a broader shift in how GameSquare manages capital. He added that potential profits from the strategy could fund further ETH purchases, stock buybacks, or other business opportunities.

While the company hasn’t specified when the full $100 million will be deployed, it emphasized that this initial move signals a clear pivot toward crypto-focused treasury management.

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