Nasdaq-listed GameSquare, one of the largest Ethereum reserve companies, announced yesterday (24th) that its board of directors has approved the acquisition of the rare "Cowboy Ape" Non-Fungible Token: CryptoPunk #5577 from DeFi giant Compound protocol founder Robert Leshner for 5.15 million dollars in preferred shares.
NFT Acquisition Strategy
According to the official announcement, this is GameSquare's first direct Non-Fungible Token purchase. As part of the transaction, GameSquare will issue and sell preferred shares worth 5.15 million dollars to Robert Leshner, which can be converted into 3.4 million GameSquare common shares at $1.50 per share. GameSquare CEO Justin Kenna emphasized:
"The acquisition of CryptoPunks demonstrates our belief in the long-term value of digital identity, decentralized ownership, and on-chain cultural capital. Incorporating the Cowboy Ape into our treasury is not just a strategic investment, but also part of GameSquare's differentiated capital management strategy. Additionally, we warmly welcome Robert Leshner, one of the most respected investors in the cryptocurrency field and a DeFi pioneer, as our shareholder."
GameSquare added that the company will not simply store this rare Non-Fungible Token in a cold wallet, but plans to lock the artwork in a DeFi protocol to mint yield-generating stablecoins, targeting an annual yield of 6-10%, with the aim of transforming the originally "waiting for appreciation" collection into a financial instrument that can continuously generate cash flow.
Cultural and Financial Dual Value of Rare Cowboy Ape
CryptoPunk #5577 is a rare Non-Fungible Token from the CryptoPunks series launched by Larva Labs in 2017, belonging to the rare Ape type of only 24 pieces, with a cowboy hat feature that has only a 1% probability of appearing. Its scarcity makes it highly recognizable in the collection circle, ranking 19th in rarity among the 10,000 CryptoPunks.
Robert Leshner purchased CryptoPunk #5577 in 2022 for 2,501 ETH (approximately 7.7 million dollars), creating the second-highest transaction record in the CryptoPunks series.
Adopting Ethereum Treasury Strategy
GameSquare, positioned as a media, entertainment, and technology company with brands like FaZe Clan, officially announced this year that it will incorporate Ethereum as a core reserve asset. Currently, the company has expanded its Ethereum treasury authorization to 250 million dollars and added a 10 million dollar ETH position, with a cumulative holding of approximately 12,913.49 ETH.
According to Google Finance data, driven by its Ethereum treasury strategy, the company's stock (GAME) has risen 75% in the past month, with a total market value of 139 million dollars.
