GameSquare Holdings has acquired the rare “Cowboy Ape” CryptoPunk #5577 NFT in a $5.15 million equity-based deal with Robert Leshner, founder of DeFi protocol Compound.
In a bold step into digital collectibles, GameSquare Holdings, Inc. (Nasdaq: GAME), a media and technology company concentrating on Web3, has made a new acquisition.
The company announced in a press release that it has acquired a rare “Cowboy Ape” CryptoPunk non-fungible token (NFT) from Robert Leshner, the founder of Compound and CEO of Superstate. The press release was shared with CryptoNews.
In exchange, GameSquare issued $5.15 million in preferred stock, convertible into approximately 3.4 million shares at $1.50 per share.
The acquisition is GameSquare’s inaugural direct NFT investment and is consistent with its strategy to establish a blockchain-native brand and generate treasury yield through digital assets.
CEO Justin Kenna characterized the Punk as a “grail” investment, underscoring the company’s increasing interest in on-chain finance. In addition to the transaction, Leshner has become a shareholder in GameSquare, contributing his expertise in decentralized finance.
What Is a CryptoPunk?
CryptoPunks are among the earliest NFT collections established on the Ethereum blockchain. The series, which was initiated in 2017 by software developers Larva Labs, comprises 10,000 pixelated characters with various characteristics. Only 24 are “Ape” Punks, making them one of the rarest.
The Cowboy Ape (#5577), which is currently included in GameSquare’s repository, is widely considered a standout in the collection. CryptoPunks are frequently perceived by collectors as digital artifacts that illustrate the emergence of online identity and the internet’s early history.
Increasing Yield with NFTs and ETH
GameSquare’s acquisition of NFTs is a component of its treasury strategy, which aims to produce annual returns of 6%–10% through utilizing stablecoins and other digital assets.
Blending culture with capital allocation, the Cowboy Ape will be implemented in community activations, marketing campaigns, and prospective licensing agreements.
GameSquare has announced that it has partnered with 1OF1 AG, which Ryan Zurrer, an investor in Web3, manages. The partnership is intended to oversee the NFT yield program. In addition, the organization will possess the asset and supervise yield generation initiatives.
According to GameSquare, it recently acquired approximately 2,742.75 Ethereum at an average price of $3,646 for $10 million. This contributes to the increasing value of the ETH position, which is currently valued at approximately 12,913.49 ETH. Under its $250 million crypto treasury authorization, the organization has allocated $45 million to ETH.
NFT Market Cap Jumps 21% to $6.3B Overnight
The NFT market experienced a significant surge on Monday, with a rise of over 20% in a single day. The total market capitalization increased from $5.1 billion to $6.3 billion. The abrupt revival results from renewed interest in Ethereum-based collections, following months of stagnation.
A high-profile CryptoPunk sweep served as a significant catalyst. A newly created wallet, 0x1bb3, spent 2,082 ETH, or approximately $5.87 million, to purchase 45 CryptoPunk NFTs within hours, according to on-chain data from Lookonchain. The transaction ignited OpenSea, where the wallet currently contains assets valued at over 1,700 ETH, or approximately $6.5 million.
Price Movement of $GAME
GameSquare Holdings Inc. (Nasdaq: GAME) shares were trading at $1.32 as of noon EDT on July 24, representing a 3.94% increase from the previous day.
Early trading saw the stock commence at $1.33, climb to a high of $1.44, and then decline to a low of $1.26. Following the company’s announcement of the CryptoPunk #5577 acquisition and the incorporation of Leshner as a shareholder, this intraday movement has rekindled investor interest.
GameSquare has a market capitalization of approximately $125.2 million and a 52-week trading range of $0.50 to $2.87.
