GameSquare Acquires Iconic Cowboy Ape CryptoPunk from DeFi Pioneer Robert Leshner

Business Insider

4 days ago

Robert Leshner makes a strategic investment in GameSquare by selling CryptoPunk #5577 for $5.15 million of the Company's preferred stock
GameSquare's initial NFT investment anchors yield strategy targeting 6-10% annualized stablecoin return
Increases Ethereum treasury holdings to approximately $52 million, with recent $10 million purchase
GameSquare Holdings, Inc. (Nasdaq: GAME) (the 'Company' or 'GameSquare'), a next-generation media, entertainment, and technology company, today announced that its Board of Directors has approved the strategic purchase of a rare and highly sought-after "Cowboy Ape" CryptoPunk NFT from Robert Leshner, founder of the DeFi protocol Compound and CEO of Superstate. Under the terms of the purchase agreement, GameSquare issued Robert Leshner $5.15 million of preferred stock that is convertible into approximately 3.4 million shares of GameSquare's common stock at $1.50 per share. The purchase marks GameSquare's first direct NFT investment and is a major milestone in its blockchain-native brand and treasury strategy that is targeting 6-10% annualized stablecoin returns.
'I am thrilled to announce our first 'grail' NFT investment as part of the differentiated treasury management strategy GameSquare is pursuing,' said Justin Kenna, CEO of GameSquare. 'In addition, we are excited to welcome Robert Leshner, one of crypto's most respected investors and a pioneer of decentralized finance as a shareholder. This relationship demonstrates the unique, forward-thinking strategy we have developed to expand into the fastest growing edges of onchain finance.'
As GameSquare continues to expand its onchain finance strategy, the Company is also working with Superstate to explore opportunities to tokenize its shares on leading blockchains, using Superstate's recently announced Opening Bell platform.
Robert Leshner stated, 'I'm excited to work with GameSquare as a shareholder, and support Justin and the team as they innovate on the digital-native treasury strategy, in traditional markets and onchain.'
CryptoPunk Added to GameSquare Treasury
Valued for its rarity and historical significance as one of only 24 Ape CryptoPunks in existence, the Cowboy Ape is widely regarded as the most desirable CryptoPunks of the 10,000-piece collection and NFTs in general. The acquisition adds a culturally iconic asset to the Company's onchain portfolio and positions GameSquare at the forefront of blockchain-native brand storytelling and community engagement.
'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,' Kenna concluded.
NFT Yielding Strategy
Under GameSquare's NFT yield program, the Company is deploying capital to leverage digital assets within the Ethereum ecosystem targeting an expected annualized return of 6%-10%. To support this strategy, GameSquare plans to leverage CryptoPunks for marketing activations, community building, and potential licensing opportunities, while continuing to expand its Web3 strategy with high-value, high-impact digital assets. It also plays a central role in GameSquare's proprietary NFT yield strategy, designed to generate sustainable onchain returns while enhancing brand equity.
Advisor Ryan Zurrer's 1OF1 AG is managing GameSquare's NFT yield strategy and will custody the asset for yield generation purposes.
ETH Holdings Update
GameSquare also announced a recent $10 million ETH purchase, acquiring approximately 2,742.75 ETH at a weighted average price of approximately $3,646 per ETH. To date, GameSquare has purchased $45 million of ETH under its $250 million authorization. The Company currently has approximately 12,913.49 ETH as of July 24, 2025.
These updates are part of the Company's crypto treasury management strategy with a current authorization of $250 million. The Company has formed a strategic partnership with leaders in the crypto space, including Ryan Zurrer of Dialectic and Rhydon Lee of Goff Capital, to manage and optimize its treasury management program.
GameSquare's custom ETH-focused yield generation strategy is built on top of Dialectic's proprietary platform Medici, which applies machine learning models, automated optimization, and multi-layered risk controls to generate best-in-class risk-adjusted returns. Targeted onchain yields of 8-14% significantly exceed the current ETH staking benchmarks of 3-4%. Dialectic's program includes multi-layered risk management protocols that are widely recognized as the best risk-adjusted yields in DeFi.
Once fully implemented, GameSquare expects to allocate capital generated from this strategy to support additional ETH asset purchases or reinvest in the Company's growth initiatives.
About GameSquare Holdings, Inc.
GameSquare (NASDAQ: GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Clan, one of the most iconic gaming organizations, they operate one of the largest gaming media networks in North America. Complementing their operating strategy, GameSquare operates a blockchain-native Ethereum treasury management program designed to generate onchain yield and enhance capital efficiency, reinforcing their commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.
To learn more, users can visit www.gamesquare.com.
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