GamesQuare launches $100 million Ethereum treasury, targeting 14%

GamesQuare has unveiled a $100 million Ethereum Treasury plan through a decentralized finance (DEFI) strategy, with a 14% yield.

After the news, its stock soared nearly 60%.

GamesQuare’s products

In a July 8 press release, the company announced that it had set the underwriting public offering of 8,421,054 shares of common stock at $0.95 per share. The product is expected to raise about $8 million in total revenue before deducting underwriting discounts, commissions and other issuance fees.

The Minneapolis-based company said the funds will be used to launch a $100 million Ethereum fiscal policy strategy. The plan aims to yield between 8% and 14%, higher than the current 3% to 4% return offered by the regular ETH Stick.

“Today’s announcement reflects the confidence of a mature group of high-quality investors and leaders,” said GamesQuare CEO Justin Kenna.

He elaborated that the plan would improve the company’s financial flexibility and support a clear capital allocation plan with a focus on obtaining more ETH, funding potential share buybacks and reinvestment in growth plans.

GamesQuare’s ETH Treasury will be supported by a strategic alliance with the dialectics of crypto-local capital management companies. The platform uses machine learning, powerful risk control and automated optimization to provide better risk-adjusted returns. Lucid Capital Markets is also the sole underwriter of the program.

“We have partnered with one of the world’s top crypto investment firms to generate real chain yields while deepening our expertise in diversified financing, pursuing new revenue streams and strengthening our balance sheet,” Kenner explained.

Next-generation media and entertainment platforms also said that their Treasury may include other strategies for generating generation in the Ethereum ecosystem, including the use of Stablecoins and NFTS to increase and diversify returns.

After the announcement, its share price rose by nearly 60%. According to Google Finance Data, the stock opened at $0.99, soared to $1.69 before closing at $1.54.

More and more companies are moving to Ethereum

GamesQuare News is because Sharplink Gaming, the largest company holder of ETH, added 7,689 ETH, to a $19.2 million portfolio. The company currently has a total of 205,634 ETH in its reserves, which was previously said was committed to developing and re-engineering the agreement.

Sharplink has also introduced a new performance metric, namely ETH concentration, which has increased by 19% over the past three weeks.

Several other companies are now adopting Ethereum-based strategies. BIT Digital recently revealed that it has transitioned its Treasury Ministry to Ethereum, accumulating over 100,000 ETH. The move comes after a $172 million public equity salary increase and a 280 BTC sale.

CEO Sam Tabar said the move demonstrates a long-term belief in the programmable capabilities of cryptocurrencies and the score production model, calling it the future of digital assets.