The institutional shift from Bitcoin (BTC) to Ethereum (ETH) is noteworthy. But what is driving companies to support the latter rather than the former?
Well, according to Justin Kenna, CEO of GamesQuare Holdings, ETH’s sixth largest publicly listed owner, that’s because Ethereum is dynamic and Bitcoin is static. In an exclusive interview with Beincrypto, Kenna explained her decision to choose Ethereum and what it means to the company.
Why do companies choose Ethereum over Bitcoin?
Over the past two months, public companies have spent millions, if not billions, of dollars, and have accumulated Ethereum. Companies like Bitmine and Sharplink have emerged as leaders, with ETH Holdings reaching $2.26 billion and $1.58 billion respectively.
Nevertheless, small players also marked strategic holdings. On July 8th, media, entertainment and technology company GamesQuare launched its Ethereum financial strategy.
The company’s board of directors approved a $100 million allocation for the second largest cryptocurrency. Less than 10 days later, GamesQuare completed its $70 million public offering.
Additionally, on July 21, the ETH Treasury Department increased its allocation from $100 million to $200 million. In particular, the company has already made sure to use some of these funds.
Data from the Strategic ETH Reserve showed GamesQuare had acquired around 12,900 ETH between July 11th and 24th, becoming the sixth largest public holder.
Justinkena, the company’s CEO, told Beincrypto that investment in ETH was not just a financial decision. It is strategic alignment with cultural, technological and economic directions.
He detailed that Ethereum is the foundation of the next wave of applications that resonate with viewers and partners. Kenna emphasized that the network is where innovation is taking place. These include smart contracts, impossible tokens (NFTs), tokenized rewards, and digital identity solutions.
“Bitcoin is worth it, but there’s no doubt, but it’s static. Ethereum is dynamic. It moves. It evolves. It speaks to the interactive creator-first world where GamesQuare works every day,” says Kenna.
It is noteworthy that companies that choose Bitcoin often emphasize the limited status of supply and valuable storage as a key factor in their appeal. However, when it comes to Ethereum, Kenna noted that the company evaluates Altcoin based on the basics of its network and its evolving supply dynamics.
He added that ETEREUM has implemented a combustion mechanism to significantly affect its overall supply, making a shift along with the transition to wagering and upgrades like EIP-1559. Kenna also pointed out that Ethereum’s inflation rate is much lower.
“It’s not only valuable from rarity, but also from its ongoing utility and adoption. It gives you confidence in long-term possibilities. Ethereum continues to expand its use cases, from tokenization to corporate recruitment. Steady build-outs support long-term value. It doesn’t rely on market hype.
Furthermore, Kenna suggested that institutional involvement will continue to affect Ethereum in the long term. He showed that institutional capital provides more structure and long-term investment perspectives.
He says the ecosystem will mature as it adopts Ethereum through vehicles such as ETFs, infrastructure and balance sheet allocations. He believes this will contribute to increased consistency and confidence over time.
GamesQuare CEO defends Ethereum strategy amid stock volatility
Meanwhile, Beincrypto previously highlighted that adopting Ethereum as a reserve asset has proven to be beneficial to the stock prices of some companies, with GamesQuare no exception.
Within two days of the announcement of the ETH Ministry of Finance, the game had skyrocketed by around 189.90%. The price reached $2.87. This was at a level that has not been seen since August 2023. Still, the rise was short-lived and the game wiped out almost all of its July profits.
Google Finance data showed that the stock price was $0.86 with market closures, an increase of 0.98% over the past month. In pre-market trading, the game fell even further, down 8.45%.
This raises the question: Is stock price performance tied to crypto, especially considering the inherent volatility of the crypto market?
“There is always some volatility in emerging sectors, but we’re clear about our approach. This is a long-term strategic move supported by thoughtful implementation and transparency. Shareholders see opportunities to understand the rationale and line up with the future of digital values,” Kenna noted Beincrypto.
He also highlighted Gamesquare’s focus on disciplined investments and outlined the company’s investment strategy. Kenna detailed that the company’s ETH allocation is being wagered through trusted partners. Take advantage of infrastructure that prioritizes both liquidity and security.
He said the company will work closely with dialectics to optimize yields while managing risks. The CEO emphasized that this approach supports stable growth while avoiding overexposure to short-term market fluctuations.
Kenna also revealed that GamesQuare’s strategy is adaptable and can be adapted to changing market conditions, including the bear market.
“We keep some of our holdings fluids fluids fluids in fluidity and adjust exposure based on market conditions. The goal is to grow responsibly while maintaining options. We also monitor the environment closely and make data-based decisions that support resilience over time,” he revealed to Beincrypto.
Is NFT still related? GamesQuare thinks so
In addition to focusing on Ethereum, GamesQuare has introduced an NFT yield strategy. This allows the company to invest in high-quality Ethereum-based assets and strategically generate Stablecoin yields aimed at achieving returns in the 6-10% range.
In line with this, the company purchased the Cowboy Ape #5577 for $5.15 million.
Investment is coming as interest in the NFTS has revived following its long-term slump. But is this a temporary surge or will NFTs continue to gain momentum? Kenna sees NFTs transform into assets with real functionality.
“Our strategy focuses on projects that deliver not only collectibles, but also utilities and ecosystem value. As technology matures, we expect the integration between NFTs, access rights, loyalty programs and digital identity to increase.
Therefore, these statements highlight GamesQuare’s confidence in Ethereum and NFT. It is not yet known how these strategies look. However, one thing is certain, the company continues to commit to both assets.
Disclaimer
Following Trust Project guidelines, this feature article presents the opinions and perspectives of industry experts or individuals. Although Beincrypto is dedicated to transparent reporting, the views expressed in this article do not necessarily reflect the views of Beincrypto or its staff. Readers should independently verify the information and consult with experts before making decisions based on this content. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
