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GameSquare shows $26M in ETH holdings, but $2.1M cash bolsters liquidity
GameSquare reported $2.1 million in cash at June 30 while its June earnings exhibit listed 15,080.51 ETH, but it did not disclose how much ETH was pledged against its debt.
GameSquare Holdings reported stronger second-quarter operations, but its balance sheet shows a liquidity gap between the reported size of its crypto holdings and the cash available to run the business. In its quarter ended June 30, the gaming and creator-economy company ended the period with $2.1 million in cash and $12.1 million of current promissory notes payable, making the availability and transferability of its crypto holdings central to liquidity, according to CryptoSlate. The company’s Aug. 12 earnings exhibit listed 15,080.51 ETH at June 30 and a rounded $25.9 million aggregate across ETH, altcoin investments, and cash. It also separately reported $2.36 million in restricted cash, with the combined pool showing more reported value than the note principal, but most of that pool was in digital assets whose June pledge status was not disclosed. On the earnings and loss side, GameSquare posted a $7.83 million crypto-linked accounting loss in the quarter, with the six-month loss on that line totaling $22.42 million. GAAP consolidated net loss was $10.65 million, while revenue was $18.48 million and company-defined adjusted EBITDA was positive at $961,636. CryptoSlate also highlighted earlier disclosures from a May 14 filing covering the quarter ended March 31. That filing described ETH-backed borrowings with 8.5% to 9.5% annual interest, 60-day extension cycles, pledged ETH that could not be freely transferred, and collateral ratio triggers for margin calls and potential liquidation if the ratio fell below specified levels, while GameSquare’s June exhibit omitted how much ETH was pledged and details on updated maturity or rollover status.
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