Is the NFT Craze Coming Back? Ethereum-Focused Company Acquires CryptoPunk!!
Ethereum (ETH) focused investment company GameSquare (GAME) has attracted attention by adding a rare CryptoPunk NFT to its treasury.
Known for its Ethereum-focused investments in the cryptocurrency world, GameSquare (NASDAQ: GAME) continues to expand its digital asset portfolio by stepping outside traditional methods, such as staking, which are frequently preferred in the industry. The company announced that it purchased a rare NFT from the CryptoPunks series, one of the most valuable NFT collections on the market, from Compound founder Robert Leshner. In this deal, a preferred stock worth $5.15 million was used as the payment method.
The NFT acquired by GameSquare is #5577, one of the “Ape Punk” characters that are only 24 in the CryptoPunks series. Robert Leshner acquired this NFT in February 2022 for 2,501 ETH (then worth $7.7 million) and transferred it to GameSquare in exchange for the company's shares in the agreement. The preferred shares given to Leshner can be converted into the company's common shares at $1.50 per share.
New strategy with NFT
GameSquare CEO Justin Kenna views this move by the company not only as an investment purpose but also as a strategic step to increase the brand's visibility in the digital world and to strengthen Web3-based media initiatives. The company plans to utilize this rare CryptoPunk in various areas such as marketing activities, community building, and licensing.
GameSquare also recently purchased an additional 2,742.75 ETH worth $10 million, raising its total Ethereum reserve to 12,913.49 ETH. Following this development, GameSquare's shares briefly rose by 8%, but by the end of the day, they traded at $1.33 with a 4.8% increase.