In Brief
- GameSquare borrowed stablecoins against a recently acquired CryptoPunk NFT.
- The rare CryptoPunk, previously owned by Compound founder Robert Leshner, was purchased for $5.15 million worth of preferred shares.
- GameSquare stated it holds around 12,900 ETH, currently valued at $48 million as of Thursday.
GameSquare, a digital media company managing a strateghic Ethereum treasury, acquired a rare “Cowboy Ape” CryptoPunk NFT (No. #5577) as part of its corporate growth strategy. The purchase, valued at $5.15 million in preferred shares from CEO of crypto firm Superstate Robert Leshner, underscores the company’s commitment to digital assets according to news sources.
Framed as more than a mascot, GameSquare CEO Justin Kenna termed the acquisition their company’s “first ‘grail’.” This strategic NFT purchase is part of a broader treasury program reportedly managed in partnership with crypto firm Dialectic.
In parallel developments, GameSquare announced expanding its treasury holdings, further bolstering its Ethereum assets with an additional $10 million injection, bringing its total ETH treasury value to over $52 million at the time of purchase.
Furthermore, GameSquare crossed another significant threshold becoming one of the first publicly traded companies to detail hoarding a pricey NFT for yield generation, leveraging it through a Dialectic-managed strategy.
The acquisition occurred after GameSquare received board authorization specifically for a potential “NFT yield strategy,” with an initial allocation of $10 million earmarked specifically for these purchases. This NFT is among the 24 rarest CryptoPunks from the original 10,000-piece collection and was previously listed for $9.4 million before its acquisition in 2022.
Treasury Strategy & Holdings
GameSquare’s holdings are substantial. Company records confirm the corporation held approximately 12,900 ETH as of Thursday, intrinsically linking its investments and its new NFT acquisition to the digital asset market fluctuations.
Context & Significance
The timing positions GameSquare to be a notable investor in the NFT market, potentially driving yields within its treasury. This acquisition is drawing comparisons due to GameSquare’s publicly traded status providing exposure to investors keen to follow developments at the “grail-holding” company.
