GameSquare Holdings (GAME) saw its stock price surge by nearly 60% on Tuesday after announcing big plans to invest in Ethereum.
By the end of the trading day on Nasdaq, the stock had jumped 58.76% to close at $1.54, and it kept climbing in after-hours trading with an extra 6.49% boost. The company was valued at around $60.25 million.
The entertainment and media company said it’s raising about $8 million by selling 8.42 million shares at $0.95 each. It also gave its underwriter, Lucid Capital Markets, the option to buy 1.26 million more shares at the same price.
GameSquare plans to use this money to kick off a new crypto investment strategy focused on Ethereum. The company said it will slowly build a $100 million Ethereum treasury over time, while still keeping enough cash to run its main business.
The company will use a platform called Medici, created by its partner investment firm Dialectic, to manage the treasury.
The goal is to earn annual returns of around 8% to 14% from these crypto investments.
