The institutional shift from Bitcoin (BTC) to Ethereum (ETH) has been notable to watch. But what’s driving companies to favor the latter over the former?
Well, according to Justin Kenna, CEO of GameSquare Holdings (GAME), the 6th largest publicly listed holder of ETH, it’s because Ethereum is dynamic, while Bitcoin is static. In an exclusive interview with BeInCrypto, Kenna explained the decision to choose Ethereum and what it means for the company.
Why Are Companies Choosing Ethereum Over Bitcoin?
Over the past two months, public companies have spent millions, if not billions, of dollars, accumulating Ethereum. Firms like BitMine and SharpLink have emerged as leaders, with ETH holdings reaching $2.26 billion and $1.58 billion, respectively.
Nonetheless, smaller players have also made a mark with strategic holdings. On July 8, GameSquare, a media, entertainment, and technology company, launched its Ethereum treasury strategy.
The firm’s board approved a $100 million allocation for the second-largest cryptocurrency. Less than 10 days later, GameSquare completed its $70 million public offering, with the majority of the proceeds earmarked for buying Ethereum.
Moreover, on July 21, it increased its ETH treasury allocation from $100 million to $200 million. Notably, the firm has already put some of these funds to use.
Data from Strategic ETH Reserve showed that GameSquare acquired around 12,900 ETH between July 11 and 24, making it the sixth-largest public holder.
GameSquare Ethereum Holdings. Source: Strategic ETH Reserve
The firm’s CEO, Justin Kenna, told BeInCrypto that investing in ETH is not just a treasury decision. It’s a strategic alignment with the direction of culture, technology, and the economy.
He elaborated that Ethereum is the foundation for the next wave of applications that resonate with their audience and partners. Kenna emphasized that the network is where innovation is happening. These include smart contracts, non-fungible tokens (NFTs), tokenized rewards, and digital identity solutions.
“Bitcoin is valuable, no question, but it’s static. Ethereum is dynamic. It moves. It evolves. It speaks to the interactive, creator-first world that GameSquare operates in every day,” Kenna said.
It is worth noting that companies that choose Bitcoin often highlight its limited supply and store-of-value status as key factors in its appeal. However, when it comes to Ethereum, Kenna noted that the firm evaluates the altcoin based on its network fundamentals and evolving supply mechanics.
He added that with the shift to proof of stake and upgrades like EIP-1559, Ethereum has implemented burn mechanisms, meaningfully influencing its overall supply. Kenna also pointed out that Ethereum’s inflation rate has been much lower.
“The value comes not just from scarcity but from ongoing utility and adoption. That gives us confidence in its long-term potential. Ethereum continues to expand its use cases, from tokenization to enterprise adoption. That steady buildout supports long-term value. We do not rely on market hype. We look at where real development is happening and ETH remains at the center of that,” the executive stated.
Furthermore, Kenna suggested that institutional involvement will continue to impact Ethereum in the long run. He indicated that institutional capital brings more structure and longer-term investment horizons.
According to him, the ecosystem will mature as institutions embrace Ethereum through vehicles like ETFs, infrastructure, and balance sheet allocations. This, he believes, will contribute to greater consistency and increased confidence over time.
GameSquare CEO Defends Ethereum Strategy Amid Stock Price Volatility
Meanwhile, BeInCrypto previously highlighted that adopting Ethereum as a reserve asset has proven favorable for some firms’ stock prices, and GameSquare was no exception.
Within two days of announcing its ETH treasury, GAME surged by approximately 189.90%. The price reached $2.87, a level not seen since August 2023. Nevertheless, the rise was short-lived, and GAME erased nearly all its July gains.
Google Finance data showed that the stock’s price was $0.86 at market close, up 0.98% over the past month. In pre-market trading, GAME saw further declines, dropping by 8.45%.
GAME Stock Performance. Source: Google Finance
This raises the question: Is stock performance tied to crypto too risky, especially considering the inherent volatility of the crypto market?
“There is always some level of volatility in emerging sectors, but we are clear about our approach. This is a long-term strategic move supported by thoughtful execution and transparency. Our shareholders understand the rationale and see the opportunity in aligning with the future of digital value,” Kenna mentioned to BeInCrypto.
He also outlined the firm’s investment strategy, highlighting that GameSquare is focused on disciplined investing. Kenna detailed that the firm’s ETH allocation is staked through trusted partners. It utilizes infrastructure that prioritizes both liquidity and security.
He said the firm collaborates closely with Dialectic to optimize yield while managing risk. The CEO stressed that the approach supports steady growth while avoiding overexposure to short-term market fluctuations.
Kenna also revealed that GameSquare’s strategy is adaptable and can adjust to changing market conditions, including a bear market.
“We keep a portion of our holdings liquid and adjust exposure based on market conditions. The goal is to grow our position responsibly while preserving optionality. We also monitor the environment closely and make>Are NFTs Still Relevant? GameSquare Thinks So
In addition to its focus on Ethereum, GameSquare has introduced an NFT yield strategy. This enables the company to invest in high-quality Ethereum-based assets and generate stablecoin yields strategically, intending to achieve returns in the range of 6–10%.
In line with this, the firm purchased Cowboy Ape #5577 for $5.15 million.
The investment comes as interest in NFTs is reviving following its prolonged slump. But, is this a temporary surge, or will NFTs continue to gain momentum? Kenna sees NFTs turning into assets with real functionality.
“Our strategy focuses on projects that offer utility and ecosystem value, not just collectibles. As the technology matures, we expect more integration between NFTs, access rights, loyalty programs, and digital identity. We are investing ahead of that shift in a way that is thoughtful and selective,” he remarked.
Thus, these statements highlight GameSquare’s confidence in Ethereum and NFTs. How these strategies will turn out remains to be seen. However, one thing is certain: the company remains committed to both assets.
