GameSquare Holdings, the parent company of esports operations like FaZe Clan and agency Code Red, has taken a major step into decentralized finance (DeFi) with board approval for a $100 million Ethereum treasury allocation, forming part of a long-term crypto-based treasury management strategy.
The move follows the pricing of GameSquare’s underwritten public offering, through which the company will raise approximately $8 million in gross proceeds. Shares were priced at $0.95 each, with 8,421,054 shares (or equivalents) being sold. A 45-day option for the underwriter to purchase up to an additional 1,263,157 shares has also been granted.
The majority of the funds raised will be used to kickstart GameSquare’s ETH-based treasury strategy, which is being developed in partnership with crypto investment firm Dialectic.
“Today’s announcement reflects the confidence of a proven group of high-quality investors and leaders in decentralized finance,” said Justin Kenna, CEO of GameSquare. “We’ve partnered with one of the world’s top crypto investment firms to generate real, on-chain yield while deepening our expertise in decentralized finance, pursuing new revenue streams, and strengthening our balance sheet.”
GameSquare’s strategy centers around Dialectic’s proprietary Medici platform, which uses machine learning, automated optimization, and layered risk controls to generate what the firm claims are best-in-class risk-adjusted returns.
“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,” Kenna added.
He continued: “Our crypto strategy reinforces our existing foundation in gaming, technology, and media, and is aligned with the broader trend of institutional adoption of digital assets. Our strategic partnership with leaders in the crypto space including Ryan Zurrer of Dialectic and Rhydon Lee of Goff Capital is just getting started and I am excited to update investors on the quick progress we are making.”
Lucid Capital Markets is acting as the sole book-running manager for the offering, which is expected to close on July 9, 2025.
