Gaming firm GameSquare boasts a $26M Ethereum fortune, but quiet debt fine print leaves just $2.1M in real cash
GameSquare reported improved second-quarter operating results, with revenue of $18.48 million and adjusted EBITDA of $961,636, but also a $7.83 million realized and unrealized loss on crypto holdings and an ETH-fund investment. That crypto loss drove much of the GAAP net loss of $10.65 million. Liquidity remains the key issue: cash was only $2.1 million at June 30 versus $12.1 million of current promissory notes payable. The company reported 15,080.51 ETH plus other digital assets and cash totaling about $25.9 million, but the amount of ETH pledged as collateral was not disclosed. Earlier filings showed ETH-backed borrowings with margin-call and liquidation triggers, and the June exhibit did not update the collateral or rollover terms. Repayment therefore depends on asset sales, operating cash flow, or refinancing, not cash alone.
