GameSquare, on the other hand, is deploying NFTs to be used as financial instruments. The company’s $10 million yield program turns digital assets based on Ethereum into revenue-generating tools, a bold but creative move in corporate crypto strategies.
GameSquare is launching a new promotion on Saturday, July 21. announced It has increased its Crypto Treasury Program to $250 Million, with a special allocation of $10,000,000 for a new NFT yield strategy. It follows the purchase of Ether for $30 million.ETHIt now holds over 10,000 tokens.
Instead of passively holding these assets, the company intends to deploy them actively across Ethereum native DeFi protocols. NFTs will not be used as collectibles, but rather as instruments that generate yield. It is underpinned by the risk management platform developed in collaboration with Swiss crypto-firm Dialectic.
This announcement places GameSquare in a very small group of companies that are experimenting with NFTs to be used as a functional component of corporate financing. This announcement reflects an evolution of digital assets strategy that moves away from speculation on balance sheets and towards operational capital allocation.
GameSquare Ethereum bet
GameSquare’s decision to concentrate its digital assets strategy on Ethereum marks a fundamental change in the way the company sees the role capital plays within modern media businesses.
Ethereum’s ability to be staked, loaned or locked into smart contracts, as well as its capacity to program, is used in a Treasury system which does more than simply store value. GameSquare treats its cryptocurrency holdings as financial infrastructure, not hedges. It has already invested $35 million in ETH, and an additional $215 million is authorized.
GameSquare has a more complex strategy. Instead of chasing collectibles that are hyped up, GameSquare is strategically buying digital assets native to Ethereum which align with the gaming and media roots. GameSquare is able to mint stablecoins that are yield-bearing by locking NFTs in DeFi protocols. The company retains ownership of its underlying assets.
“We are excited to be among the first public companies to include NFTs as part of a diversified digital asset strategy,” Justin Kenna said that the company CEO. “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.”
In a press release GameSquare announced that it had established a crypto-investment committee, which reports directly to the board and is subject to strict controls in order to avoid conflicts of interests.
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Source: crypto.news
