GameSquare Acquires 'Cowboy Ape' CryptoPunk for $5.15 Million

GameSquare has made a significant move in the NFT space by acquiring a rare CryptoPunk known as the 'cowboy ape' for $5.15 million from DeFi pioneer Robert Leshner. This acquisition marks a strategic pivot towards NFTs for the Ethereum treasury company and opens new avenues for collaboration with Leshner.

Key Takeaways

GameSquare acquired the 'cowboy ape' CryptoPunk from Robert Leshner for $5.15 million.
The acquisition was made through an all-equity deal, allowing Leshner to become a shareholder in GameSquare.
Leshner will assist GameSquare in its Ethereum-focused treasury strategy and its transition into the NFT market.
The 'cowboy ape' is one of only 24 CryptoPunks with an ape-like appearance, underscoring its rarity and appeal.
Despite the acquisition's significance, the NFT market remains down from its 2021 highs, with many collections losing substantial value.

GameSquare acquired ‘cowboy ape’ CryptoPunk for $5.15m

Main Content

Ethereum treasury firm GameSquare is deepening its commitment to non-fungible tokens (NFTs). On Thursday, July 24, the company finalized the purchase of the 'cowboy ape' NFT from Compound founder Robert Leshner, executing this purchase via an all-equity deal valued at $5.15 million. As part of this deal, GameSquare issued $5.15 million in preferred stock to Leshner, which is convertible into around 3.4 million shares of GameSquare.

With this transaction, Robert Leshner, a known figure in decentralized finance (DeFi) and CEO of Superstate, will join GameSquare as a shareholder. His expertise will play a vital role in shaping the company's Ethereum-focused treasury strategy while supporting its recent shift towards NFTs.

“I’m thrilled to become a shareholder in GameSquare and collaborate with Justin and the team as they innovate within the digital-native treasury strategy, both in traditional markets and onchain," stated Leshner.

This unique 'cowboy ape' NFT, one of only 24 CryptoPunks featuring an ape-like design, will now be a part of GameSquare’s treasury. According to Justin Kenna, the CEO of GameSquare, the decision to acquire this NFT reflects the company's confidence in the future of NFT technology.

“Obtaining CryptoPunks exemplifies our belief in the lasting value of digital identity, decentralized ownership, and cultural capital onchain. CryptoPunks are significant digital artifacts that played a crucial role in defining an era. By adding the Cowboy Ape to our treasury, we make a strategic investment while signaling our intent,” said Kenna.

However, it is important to note that the NFT market has not yet recovered from the peaks seen in 2021. Even renowned collections like CryptoPunks have seen their floor prices tumble, currently sitting 50% lower than their all-time highs recorded in October 2021. Lesser-known collections have faced even more severe declines, with some losing up to 99% of their value.