GameSquare Shares Tumble On $70 Million Public Offering To Fuel Crypto Strategy

GameSquare Holdings Inc (NASDAQ:GAME) shares are trading sharply lower Thursday morning after the company announced the pricing of a $70 million public offering. The media and entertainment firm is selling 46,666,667 shares of common stock at $1.50 per share to aggressively expand its Ethereum (CRYPTO: ETH) treasury strategy.

What To Know: This move follows Wednesday’s surge, when investor excitement built around the company’s plan to turn its treasury into a profitable business vertical. In partnership with crypto capital manager Dialectic, GameSquare intends to deploy the fresh capital into on-chain yield strategies that have historically returned 8–14%.

CEO Justin Kenna stated the goal is to create “durable, recurring cash flows” to fund further ETH purchases and support company growth. He projects the strategy could deliver over $10 million in incremental annual profitability.

The offering includes an overallotment option that could boost total proceeds to $80.5 million. Combined with a separate $9.2 million raise last week, GameSquare has secured over $90 million to execute its crypto-focused initiative.

While the immediate dilution from the offering has pressured the stock, the company is likely betting its unique treasury management will drive significant long-term value for shareholders.

Price Action: According to data from Benzinga Pro, GAME shares are trading 28.5% to $1.65 Thursday morning. The stock has a 52-week high of $2.87 and a 52-week low of $0.50.

Read Also: ETH Surges 7% To Crack $3,400: When Will The $4,000 Mark Fall?

How To Buy GAME Stock

By now you're likely curious about how to participate in the market for GameSquare Holdings – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of GameSquare Holdings, which is trading at $1.64 as of publishing time, $100 would buy you 60.98 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image: Shutterstock