Key Takeaways
- GameSquare plans to buy up to $100 million in ETH, starting with an $8M share offering.
- SharpLink is currently the largest Ethereum treasury company.
- However, with the likes of GameSquare, Bit Digital and BTCS recently entering the race, competition is fierce.
On Tuesday, July 8, GameSquare announced that its board had approved a $100 million Ethereum treasury strategy, partly funded by a new public offering.
The news follows a similar announcement from SharpLink, another gaming-agency-turned-ETH-treasury company vying to become Ethereum’s MicroStrategy.
Now, competition is heating up as more companies enter the fray.
GameSquare’s ETH Strategy
GameSquare Holdings is a Nasdaq-listed marketing firm focused on gaming and creator entertainment.
The company’s board has approved an ETH allocation of up to $100 million, “based on staged investments over time.”
At the same time, GameSquare has lined up 8,421,054 shares to be sold at $0.95 per share, aiming to raise around $8 million in fresh capital.
Similarities With SharpLink
GameSquare’s latest announcement follows SharpLink’s acquisition of nearly $500 million worth of ETH earlier this year.
Besides their interest in ETH as a strategic treasury asset, GameSquare and SharpLink have many similarities.
Both companies are listed on the Nasdaq and operate in the gaming and eSports AdTech space.
Backed by the Ethereum giant Consensys, SharpLink has gone all in on its new treasury strategy, which has all but sidelined its original business.
In contrast, although GameSquare’s board has approved up to $100 million in ETH purchases, it for now it has only taken a tentative step toward that goal.
Without an equivalent to Consensys’ $450 million firepower, GameSquare’s $8 million share issuance is testing the waters.
If the demand is there and investors buy into the plan, it will then raise more capital to fund additional purchases.
Ethereum Treasury Space Heats up
Besides GameSquare and SharpLink, other companies have also embraced Ethereum treasury strategies.
On July 7, Bit Digital announced that it had raised approximately $172 million in a new share offering and sold approximately 280 BTC to fund ETH purchases.
The firm previously revealed plans to wind down its Bitcoin mining operations and shift its entire treasury balance to Ethereum, becoming the only pure-play ETH treasury firm listed on the Nasdaq.
Finally, on Tuesday, Blockchain Technology Consensus Solutions (BTCS) announced its own plans to raise $100 million to fund strategic ETH acquisitions.
A day later, with GameSquare aiming for $500 million, BTCS upped its target to $225 million.
Drawing parallels with the booming BTC treasury space, expect more companies to add a diversified range of crypto assets to their balance sheets.
However, just as Strategy (formerly MicroStrategy) and Metaplanet have emerged as the dominant Bitcoin proxies in public markets, a small number of Ethereum treasury companies will likely take the biggest share of investors’ money.
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