Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 268

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 268
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adoption occurs in the near or medium-term, there is no assurance that Ethereum usage will continue to grow over the long-term.

Because
Ethereum has no physical existence beyond the record of transactions on the Ethereum blockchain, a variety of technical factors related
to the Ethereum blockchain could also impact the price of Ethereum. For example, malicious attacks by miners, inadequate mining fees
to incentivize validating of Ethereum transactions, hard “forks” of the Ethereum blockchain into multiple blockchains, and
advances in digital computing, algebraic geometry, and quantum computing could undercut the integrity of the Ethereum blockchain and
negatively affect the price of Ethereum. The liquidity of Ethereum may also be reduced and damage to the public perception of Ethereum
may occur, if financial institutions were to deny or limit banking services to businesses that hold Ethereum, provide Ethereum-related
services or accept Ethereum as payment, which could also decrease the price of Ethereum. Similarly, the open-source nature of the Ethereum
blockchain means the contributors and developers of the Ethereum blockchain are generally not directly compensated for their contributions
in maintaining and developing the blockchain, and any failure to properly monitor and upgrade the Ethereum blockchain could adversely
affect the Ethereum blockchain and negatively affect the price of Ethereum.

The
liquidity of Ethereum may also be impacted to the extent that changes in applicable laws and regulatory requirements negatively impact
the ability of exchanges and trading venues to provide services for Ethereum and other digital assets.

There
is no assurance that a market for Ethereum will continue to exist, and liquidity in the Ethereum market may be severely limited at times.

Ethereum
is traded on unregulated exchanges that may be subject to outages, manipulation, or loss of access. In periods of market stress or regulatory
disruption, we may be unable to sell Ethereum at favorable prices, or at all, which could impact our liquidity and financial flexibility.

We
may not achieve the expected benefits from purchasing cryptocurrencies, and such strategy may not align with investor expectations.

While
we may pursue the purchase of cryptocurrency, such as Ethereum, by way of direct or indirect ownership, for strategic, treasury, or investment
purposes, there is no assurance that this strategy will generate positive returns or provide a long-term benefit. Investors may not support
our allocation of corporate funds to a highly speculative asset, and such use of proceeds could adversely affect investor perception
and our stock price.

49

Regulatory
change reclassifying Ethereum as a security could lead to our classification as an “investment company” under the