GameSquare Holdings Inc (NASDAQ:GAME) shares continue to move higher on Wednesday after the company announced plans to launch an Ethereum (CRYPTO: ETH) treasury strategy.
What To Know: Micro-cap stock GameSquare rallied more than 58% on Tuesday after the company announced an offering and said it intends to use the proceeds to launch an Ethereum strategy.
GameSquare priced an underwritten offering of approximately 8.42 million shares at 95 cents per share for gross proceeds of approximately $8 million. A majority of the proceeds will help fund purchases of ETH, the native cryptocurrency of the Ethereum blockchain, supported by a strategic alliance with crypto-native capital management firm Dialectic.
“This new treasury management strategy enhances our financial flexibility and allows us to support a defined capital allocation plan that is focused on pursuing additional ETH asset purchases, funding potential share repurchases and reinvesting in our growth initiatives,” said Justin Kenna, CEO of GameSquare.
The strategy pivot comes after multiple companies announced Ethereum strategies in recent weeks, which has helped spark strong investor interest. Shares of BitMine Immersion Technologies, SharpLink Gaming and Bit Digital have all rallied in recent weeks after announcing similar moves.
Ethereum was also riding strong gains at last check, up approximately 3.00% over a 24-hour period at $2,628 at the time of publication, according to Benzinga Pro. Spot Ethereum ETFs had net inflows of $46.6 million to start the week.
GameSquare shares have made big moves in recent sessions, which is to be expected given its low market cap of less than $60 million as of Tuesday’s close. While short interest remains low at around 1.87% of the float, investor excitement surrounding Ethereum treasury strategies is driving abnormally high volume. GameSquare’s session volume was above 74 million at the time of writing Tuesday, versus its 100-day average of just 892,000.
GAME Price Action: GameSquare shares closed Tuesday up 58.8% at $1.54. The stock was hitting new 52-week highs at the time of publication, last up 40.4% at $2.17, according to Benzinga Pro.
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