Simply put
- GamesQuare has borrowed Stablecoins using its recently acquired Cryptopunk as collateral.
- The unique Crypto Punk NFT was bought from Compound founder Robert Leschner for $5.15 million in preferred stock.
- As of Thursday, GamesQuare held 12,900 ETH, valued at around $48 million.
GamesQuare, a digital media firm, announced earlier this week that it purchased a Cryptopunk NFT using preferred stock valued at $5.15 million.
This specific NFT was owned by Robert Leschner, who is also the CEO of Crypto Asset Manager Superstate. Leschner’s preferred stock can be converted into common stock for $1.50 per share, according to GamesQuare.
Named “Cowboy Hat” and “Ape,” this Cryptopunk NFT is among the rarest in the collection, which comprises 10,000 pixelated profiles. Leschner acquired the NFT in 2022 for 2,501 ETH, approximately $9.4 million, based on blockchain records.
GamesQuare stands out as one of the first public companies to announce significant NFT acquisitions aimed at enhancing shareholder value. The firm plans to use some of its digital art as “strategic financial assets,” “cultural symbols,” and yield-generating assets.
GamesQuare has obtained the iconic Cowboy Ape #5577 Cryptopunk from Defi Pioneer @rleshner with a strategic investment of $5.15 million.
Additionally, the company added $10 million worth of ETH to its treasury, bringing its total Ethereum holdings to over $52 million.
– GamesQuare Holdings Inc. (@GSQHoldings)
On Thursday, GamesQuare showcased the purchased Cryptopunk on its corporate X profile, although a company representative remarked that NFTs should represent more than just a brand symbol.
“There’s really no other space like this crypto community,” the spokesperson commented. “Owning a Punk signals your commitment to the ecosystem.”
The company, established in 2011, mentioned this week that it obtained board approval to pursue an “NFT yield strategy” with an initial $10 million investment.
A GamesQuare representative explained that the company borrows stablecoins for “high-quality NFTs like our Cryptopunk at fixed rates,” which are used to generate yields and leverage strategies defined by the dynamics of crypto assets.
Shares of GamesQuare have surged along with Ethereum values, increasing 72% to $1.30 over the past month. However, the stock has seen a decline from a peak of $2.82 earlier this month.
In a statement, GamesQuare’s CEO Justin Kenna characterized the acquisition as the company’s “first ‘Grail'” purchase in the realm of rare NFTs, suggesting more acquisitions might be on the horizon.
Furthermore, a spokesperson expressed interest in high-quality art and digital collectibles, noting that such items carry significant cultural and financial weight.
Robert Leschner recently made headlines again. A lesser-known Florida company that focuses on alcohol advertising defended itself against claims regarding the acquisition of Leschner. The firm has been labeled a “partial” victory at X for unveiling a Bitcoin financial strategy even after being diluted from control.
GamesQuare reported that the market for Cryptopunks had seen a notable uptick in trading activity, with $13.6 million worth changing hands over the weekend alone.
As of Thursday, the company reported owning around 12,900 ETH, nearly $48 million, and hinted at potential future purchases of digital assets up to $250 million with board approval.
GamesQuare has its hands in multiple popular esports entities, including the gaming organization FaZe Clan, as well as a marketing firm and a production studio.
The Cryptopunk acquired by GamesQuare was officially transferred to the company on Thursday, with blockchain data confirming the transaction.
Additionally, the digital wallet now contains 242 NFTs created by well-known artists, among others. The wallet management falls under a structured financial program focused on yields and strategic partnerships, including ETH and NFT custody.
