GameSquare Holdings, a Nasdaq-listed esports and entertainment company, introduced an Ethereum (ETH) yield strategy in collaboration with crypto asset manager Dialectic.
According to the announcement, GameSquare’s strategy aims to deliver 8% to 14% yearly profits on its holdings of ETH by taking advantage of on-chain features like staking and yield farming. The company has also strengthened its crypto treasury by purchasing an additional 2,717 Ethereum (ETH) for $10 million, bringing its total ETH holdings to 15,630.07.
Further, the August 1 release, GameSquare has also approved a stock buyback plan worth up to $5 million. This buyback will be funded using the income generated from the Ethereum yield strategy. The company will only buy back shares if the stock price is below $1.50, which it believes is undervalued.
GameSquare CEO Justin Kenna said that this move reflects confidence in both the company’s operations and its new crypto strategy. “Every dollar of net income our Ethereum yield strategy generates can be used to buy back our stock, provided it trades below $1.50 per share under our current plan,” he added.
Since unveiling its crypto strategy, GameSquare has already spent more than $60 million on Ethereum and NFTs. This is part of a much larger plan to turn these crypto assets into active sources of income instead of just holding them passively. The goal is to use crypto not only to preserve value but also to create new revenue streams for the business.
GameSquare’s ETH Strategy
On July 9, GameSquare had announced a $100 million Ethereum treasury strategy. Following this, on July 18, the company raised $70 million by selling over 46 million shares at $1.50 each. Most of this money is now being used to buy more ETH and grow their crypto-focused investments.
Meanwhile, GameSquare still has board approval to invest up to $250 million in its Ethereum strategy. This means the company may continue increasing its ETH and crypto exposure over time as part of its long-term financial plans.
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