GameSquare, a Nasdaq-listed entertainment and technology company, has taken a step forward in boosting its strategic crypto reserve. As revealed in a recent press release, it has acquired a very rare and highly sought-after “Cowboy Ape” CryptoPunk non-fungible token (NFT) from Robert Leshner, founder of the decentralized finance (DeFi) protocol Compound and CEO of Superstate.
NFTs are unique digital assets that represent ownership of a specific item, whether digital or physical. Unlike cryptocurrencies like bitcoin (BTC), which are fungible or interchangeable, NFTs are unique and cannot be divided into smaller units.
$5.15M Cowboy Ape NFT
The Cowboy Ape is widely regarded as one of the rarest and most desirable CryptoPunks of the 10,000-piece collection and NFTs in general. It is also valued for its rarity and significance as one of only 24 Ape CryptoPunks in existence. As a result, it is highly sought after among NFT collectors and GameSquare has gone all in to get this token.
To acquire the NFT, GameSquare issued Leshner $5.15 million of its preferred stock. When converted, it’s worth about 3.4 million shares of the company’s common stock at a rate of $1.50 per share.
Notably, this purchase marks GameSquare’s first direct NFT investment and represents a significant step forward in establishing its reputation as a blockchain-native brand and solidifying its treasury strategy.
GameSquare to Boost NFT Strategy With CryptoPunk
GameSquare’s Board of Directors sees its CryptoPunk purchase as a big move. Under its NFT yield program, the Company is investing its capital in acquiring crypto assets within the Ethereum ecosystem. Its goal is to attain 6%-10% annual returns.
Furthermore, it plans to utilize CryptoPunks for marketing, community engagement, and licensing, thus boosting its Web3 strategy. Meanwhile, CryptoPunks will drive GameSquare’s NFT yield strategy, generating passive on-chain returns and enhancing brand value.
“Acquiring CryptoPunks showcases our belief in the long-term value of digital identity, decentralized ownership, and cultural capital onchain. CryptoPunks are digital artifacts that helped define an era. Adding the Cowboy Ape to our treasury is both a strategic investment and a statement of intent,” Justin Kenna, CEO of GameSquare, commented.
GameSquare Buys ETH
As part of its crypto treasury, GameSquare recently spent $10 million to acquire about 2,742 Ethereum (ETH) at an average price of $3,646 per ETH. At the time of writing, the company has spent $45 million on ETH purchases and holds approximately 12,914 ETH. Additionally, following the announcement of a $100 million investment strategy in Ethereum, its stock price rose by 58% earlier this month.
Meanwhile, a few other publicly traded firms are going all in on ETH, despite market volatility. Following a $250 million private placement this month, BitMine holds approximately 566,776 tokens, valued at over $2 billion.
