GameSquare reports $26M in crypto assets, only $2.1M cash available

GameSquare Holdings reported a $7.83 million crypto-linked accounting loss in Q2, ending June with $2.1 million in cash and $12.1 million in current promissory notes payable. The company's earnings report on Aug. 12 listed 15,080.51 ETH valued at approximately $25.9 million, including altcoin investments and cash. However, $2.36 million was classified as restricted cash. The total reported value of digital assets exceeded the note principal, but most assets were in digital currencies with undisclosed pledge statuses. GameSquare experienced a total loss of $22.42 million on crypto holdings over six months, with a GAAP consolidated net loss of $10.65 million. Revenue for the quarter was $18.48 million, and adjusted EBITDA was positive at $961,636. The company’s earlier filings indicated ETH-backed borrowings with interest rates between 8.5% and 9.5%, and a collateral ratio below 130% could trigger a margin call. As of March 31, 6,958.15 ETH worth $14.6 million secured these borrowings. GameSquare sold 1,209 ETH on July 15, reducing its holdings to approximately 14,300 ETH. The repayment capacity remains uncertain due to the need for asset conversion and the unknown status of collateral commitments.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.