GameSquare increases crypto strategy to $250m targeting NFT and DeFi Yields

Esports-focused media company GameSquare has provided an update on its crypto asset treasury plan. 

In a recently published press release, GameSquare announced that its board approved a 150% increase to its Ethereum treasury programme, boosting its investment capacity from $100m to $250m.

GameSquare’s board has also approved a yield strategy along with the updated budget framework. 

The company is now empowered to deploy capital into non-fungible tokens (NFT) yield programmes and other decentralized finance (DeFi) protocols. The strategy targets annualised returns of 6-10% – a significant premium over traditional ETH staking yields.

This strategic shift could position GameSquare ahead of most institutional investors, which typically limit crypto exposure to passive Ethereum accumulation. 

Justin Kenna, CEO of GameSquare, stated in the press release: “We are excited to be among the first public companies to include NFTs as part of a diversified digital asset strategy. This reflects the innovative approach to our treasury management initiatives. With deep experience building in-game and real-world creative environments, GameSquare is uniquely positioned to understand the cultural and economic value of these digital assets.”

GameSquare’s programme will be overseen by an in-house crypto committee that reports to the board. Meanwhile, the yield generation strategy would be executed on Dialectic’s crypto platform Medici, which uses AI tools to identify high-yield opportunities.

The esports company will execute this new strategy using an initial $10m allocation. Once fully implemented, the company plans to use the income generated from this strategy to fund further ETH purchases.

GameSquare recently acquired a CryptoPunk NFT for $5.15m from DeFi pioneer Robert Leshner, along with $10m in Ethereum. Combined with its earlier $30m ETH purchase, the company has now deployed $52m of its $250 million treasury programme.

Funding for these initiatives comes partly from a recent public offering of 8.4m shares, priced at $0.95 each, which raised approximately $8m. The company plans to use the yield generated from its DeFi strategies to fund additional ETH purchases, creating a self-reinforcing investment cycle.

The company is hosting a livestream on July 29th to discuss its ETH-focused strategy and how it complements the company’s broader vision.

Beyond crypto acquisitions, GameSquare continues to lead in the esports scene. Recently, the media company announced it will design and create the 100 Thieves Summer Block Party for the year in conjunction with Lexus, AT&T and others.