GameSquare Acquires Rare CryptoPunk NFT for $5.15 Million

GameSquare, a digital media company, announced the acquisition of a rare CryptoPunk NFT for $5.15 million worth of preferred shares.

The Ethereum-based NFT was previously owned by Robert Leshner, founder of the decentralized lending protocol Compound and current CEO of crypto asset manager Superstate. Leshner’s preferred shares can be converted into common stock at $1.50 per share, according to GameSquare.

The CryptoPunk, featuring traits like “Cowboy Hat” and “Ape,” ranks among the 24 rarest NFTs from the iconic collection of 10,000 pixelated profile pictures, as listed on the marketplace OpenSea. Leshner acquired the NFT for 2,501 ETH, worth $9.4 million, in 2022, based on blockchain data.

GameSquare is one of the first publicly traded companies to announce a high-value NFT purchase aimed at maximizing shareholder value. The company plans to utilize the digital art as a “strategic treasury asset,” “cultural symbol,” and yield-generating asset.

> GameSquare has acquired the iconic Cowboy Ape #5577 CryptoPunk from DeFi pioneer @rleshner in a $5.15M strategic investment.
> We also added $10M of ETH to our treasury, bringing total Ethereum treasury holdings to over $52 million.
> — GameSquare Holdings Inc. (@GSQHoldings) July 24, 2025

On the day of the announcement, GameSquare’s profile picture on X featured the purchased CryptoPunk, although a company spokesperson stressed that the NFT represents more than a mascot. “There’s nothing more O.G. in this space than a CryptoPunk,” they stated, emphasizing the cultural significance of a Punk in the ecosystem.

On Monday, the established company received board authorization to pursue an “NFT yield strategy,” beginning with an initial allocation of $10 million. The spokesperson explained that GameSquare plans to borrow stablecoins against high-quality NFTs, like the CryptoPunk, at a fixed rate, to generate yield and capture a spread managed by crypto firm Dialectic.

GameSquare’s stock has surged by 72% to $1.30 over the past month, following an upward trend in Ethereum’s price, though it has decreased from a high of $2.82 earlier this month.

In a statement, GameSquare CEO Justin Kenna referred to the acquisition as the company’s “first ‘grail’,” indicating potential for more NFT purchases to come. The spokesperson highlighted GameSquare’s interest in high-quality art and digital collectibles, noting that CryptoPunks have significant cultural and financial value.

Recently, Leshner has made headlines again as a little-known Florida firm that specializes in liquor advertising defended itself against an acquisition from him. He announced a “partial” victory after they revealed a Bitcoin treasury strategy while he was diluted out of a controlling stake.

GameSquare’s announcement coincides with a spike in CryptoPunk sales, which recently produced NFT trading volumes not seen in months. On Sunday alone, $13.6 million worth of CryptoPunks changed hands through a dedicated NFT marketplace.

As of Thursday, GameSquare reported owning around 12,900 ETH, approximately valued at $48 million. The company is now authorized to purchase up to $250 million worth of digital assets.

GameSquare owns multiple companies popular in the esports sector, including the gaming organization FaZe Clan, a marketing agency, and a production studio.

The CryptoPunk purchased by GameSquare was transferred to a new owner on Thursday per blockchain data. The recipient’s digital wallet held 242 other NFTs, including those created by notable digital artists like Beeple and Snowfro. This wallet is managed under GameSquare’s treasury program in partnership with Dialectic, which encompasses ETH custody, NFT custody, and yield strategies under one structure.