Company: GAME
Filing Date: 2025-07-18
Form Type: 424B5
Source: 0001641172-25-020129
Chunk: 25

Company: GameSquare Holdings, Inc.
Filing Date: 2025-07-18
Form: 424B5
Chunk 25
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ation of certain financial institutions that provided lending and other services to
the digital assets industry, SEC enforcement actions against other providers, or placement into receivership or civil fraud lawsuit against
digital asset industry participants have highlighted the perceived and actual counterparty risk applicable to digital asset ownership
and trading. Legal precedent created in these bankruptcy and other proceedings may increase the risk of future rulings adverse to our
interests in the event one or more of our custodians becomes a debtor in a bankruptcy case or is the subject of other liquidation, insolvency
or similar proceedings.

While our custodians will
be subject to regulatory regimes intended to protect customers in the event of a custodial bankruptcy, receivership or similar insolvency
proceeding, no assurance can be provided that our custodially-held Ethereum will not become part of the custodian’s insolvency estate
if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if we pursue any strategies
to create income streams or otherwise generate funds using our Ethereum holdings, we would become subject to additional counterparty risks.
We will need to carefully evaluate market conditions, including price volatility as well as service provider terms and market reputations
and performance, among others, prior to implementing any such strategy, all of which could effect our ability to successfully implement
and execute on any such future strategy. These risks, along with any significant non-performance by counterparties, including in particular
the custodian or custodians with which we will custody substantially all of our Ethereum, could have a material adverse effect on our
business, prospects, financial condition, and operating results.

If Ethereum is determined
to constitute a security for purposes of the federal securities laws, the additional regulatory restrictions imposed by such a determination
could adversely affect the market price of Ethereum and in turn adversely affect the market price of our common stock. See “Risk Factors—Regulatory change reclassifying Ethereum as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940, as amended, or the 1940 Act, and could adversely affect the market price of Ethereum and the market price of our common stock” above. Moreover, the risks of us engaging in a Ethereum treasury strategy could create complications
due to the lack of experience that third parties have with companies engaging in such a strategy, such as increased costs of director
and officer liability insurance or the potential inability to obtain such coverage on acceptable terms in the future.

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