GameSquare allocates $10 million to turn Ethereum NFTs into a revenue engine, opening a new era of on-chain interest for corporate finances.

The publicly listed company GameSquare announced on July 21 that it will expand its encryption asset allocation scale to $250 million, and allocate $10 million specifically for a breakthrough "NFT revenue strategy"—transforming Ethereum-based NFTs into interest-generating financial instruments. This move breaks the traditional view of companies seeing NFTs merely as marketing gimmicks, instead activating their capital value through Decentralized Finance protocols. The company has cumulatively purchased over 10,000 ETH (worth approximately $35 million) and is building a Risk Management framework in collaboration with Swiss encryption institution Dialectic, becoming the first publicly listed company to incorporate NFTs into its corporate financial strategy.

$250 million treasury: from passive holding to active revenue generation GameSquare's encryption asset strategy receives a significant upgrade:

  • Scale Expansion: The total allocation of encryption assets has significantly increased from $30 million to $250 million, demonstrating its strong commitment to embracing on-chain finance.
  • NFT Special Fund: Among them, 10 million USD is specifically allocated for innovative NFT yield strategies, marking the first systematic exploration of the financial utility of NFTs by enterprise-level capital.
  • ETH Core Holdings: Recently added an additional purchase of $30 million in ETH, bringing total holdings to over 10,000 coins, laying the foundation for operations in the Ethereum ecosystem.

NFT Financialization: A Paradigm Revolution from Collectibles to Revenue Tools GameSquare's NFT strategy disrupts industry perception:

  • Function Rebuilding: Abandon the traditional positioning of NFTs as digital collectibles and view them as Yield-Bearing Instruments that can generate cash flow.
  • On-chain operations: By using the Ethereum Decentralized Finance protocol, lock specific NFTs as collateral to mint yield-generating stablecoins or participate in liquidity mining to maximize asset returns.
  • Risk Management: Developed a customized risk control framework in collaboration with the Swiss professional institution Dialectic, monitoring collateral rates, volatility, and protocol security to ensure the safety of corporate funds.
  • Strategic Fit: The selected NFTs focus on game and media-related assets (such as virtual real estate, game item IP), forming synergy with its core business.

Ethereum: The Active Financial Infrastructure for Corporate Treasuries GameSquare positions ETH as a strategic operational capital:

  • Beyond Value Storage: Utilizing the programmability of Ethereum, use ETH for staking, lending, and smart contract interactions, upgrading corporate treasuries from static reserves to dynamic revenue engines.
  • Infrastructure Thinking: CEO Justin Kenna emphasized, "GameSquare deeply understands the cultural and economic value of these digital assets through its experience in building virtual environments." The company views encryption assets as the financial infrastructure supporting future media business.
  • Scale Deployment: A total of $35 million has been invested in purchasing ETH, and the remaining $215 million of authorized funds will be deployed continuously according to strategy.

Corporate Governance: Establish a Cryptocurrency Investment Committee Directly to the Board of Directors To manage the risks of innovative business, GameSquare has established a strict governance mechanism:

  • Special Committee: Establish a Cryptocurrency Investment Committee that reports directly to the board to ensure strategy transparency and accountability.
  • Interest Isolation: Establish strict control clauses to prevent conflicts of interest in operations.
  • Industry Benchmark: As the first publicly listed company to incorporate NFTs into a diversified asset strategy, its governance framework may become an industry reference standard.

Conclusion: GameSquare's multi-million dollar NFT revenue plan is a key turning point for corporate crypto asset allocation from "speculative holdings" to "operational revenue generation." Its practice of transforming NFTs into interest-generating financial instruments not only unlocks the cash flow potential of digital assets but also reshapes the boundaries of corporate financial management. Backed by risk management from professional institutions in Switzerland, this strategy provides a reusable security template for traditional listed companies exploring on-chain finance. If the stable income capability of NFTs is successfully validated, it will attract more corporate funds into the DeFi ecosystem, promoting innovations in NFT liquidity solutions and valuation models. GameSquare's breakthrough marks the transition of enterprise-level crypto applications from concept validation to the stage of large-scale value capture, further solidifying Ethereum's core position as the financial infrastructure for enterprises.

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