In an announcement yesterday, Nasdaq-listed software company GameSquare Holdings revealed that it had purchased $5 million worth of Ethereum (ETH) as part of its $100 million ETH-focused treasury strategy. With this move, GameSquare joins a growing number of companies diversifying their corporate treasuries by investing in digital assets.
The Texas-based firm recently completed its initial ETH purchase, acquiring 1,818.84 ETH at a weighted average price of $2,749, totalling $5 million. This marks the first step in GameSquare’s broader plan to deploy $100 million into Ethereum and related digital assets.
The company’s strategy focuses on building a crypto-native treasury framework designed to generate sustainable, risk-adjusted yield through decentralized finance (DeFi) protocols and the broader Ethereum ecosystem. Commenting on the development, Justin Kenna, CEO of GameSquare said:
In partnership with Dialectic and Ryan Zurrer, we are leveraging Medici, Dialectic’s proprietary platform that combines machine learning, automated optimization, and multi-layered risk controls, to target best-in-class risk-adjusted yields of 8-14%, well above current staking benchmarks of 3-4%.
Unlike traditional treasury strategies focused around Bitcoin, GameSquare’s ETH allocation seeks to actively generate yield by engaging with DeFi infrastructure, rather than simply holding the asset. This signals a novel growing trend of companies favoring ETH over BTC for treasury diversification.
While pursuing higher returns typically involves increased risk, Medici’s reputation for advanced risk management and performance tracking offers a layer of confidence. As more companies embrace ETH-based yield strategies, DeFi protocols are likely to attract deeper liquidity over time.
Despite currently trading about 40% below its ATH of $4,878 – set back in November 2021 – Ethereum is seeing increased accumulation by large investors, often referred to as “smart money.”
