NFT treasury talk gathers steam as GameSquare acquires CryptoPunks in preferred shares deal

Source Cryptopolitan

GameSquare (GAME), a Nasdaq-traded company, has acquired a rare CryptoPunks NFT in exchange for preferred shares. The deal marks the potential for reserves based on valuable on-chain art. 

GameSquare (GAME) struck a deal to acquire CryptoPunk #5577, a rare NFT that is one of the 25 special edition Ape Punks. The previous owner, Compound’s founder Robert Leshner, sold the NFT in exchange for $5.15M in preferred shares. 

The NFT, also known as Cowboy Ape, is already used for GameSquare’s X profile. 

The rare Punk was first claimed in 2017 and has received multiple bids over the years. The highest bid was for $122.82M in August 2021. Leshner held out through multiple other offers, offering higher valuations in USD and ETH terms. Even during crypto winter, the NFT received regular offers.

Leshner acquired the NFT in early 2022, when the market was already unraveling. The rare item then spent years in “crypto winter,” where NFTs were seen as a failed experiment. However, several collections held short-term rallies and responded to positive news. 

Leshner will receive payment in the form of preferred GameSquare shares valued at $5.15M. The shares are convertible into GameSquare common stock at $1.50 per share. Currently, GameSquare trades at $1.30, incentivizing Leshner to keep the preferred shares. The rare Cowboy Ape has already been transferred to a new wallet, which holds three other Punks. 

GameSquare already holds 10,170 ETH, after its latest $10M purchase. The company aims to signal its alignment with the Ethereum ecosystem, by holding rare and valuable items. 

Are NFTs returning in 2025?

The GameSquare deal is starting to look similar to the creation of crypto treasuries, though this time, the company acquires an NFT. The appeal of NFTs returned as ETH broke above $3,800, sparking hopes for a return to valuable on-chain art. 

In the past weeks, the NFT sector recovered, boosting the floor price of top collections. NFT items rallied after several quarters of decline, driven by the long downtime of OpenSea. Currently, NFTs are coming back in fashion, with Ethereum minting a special item to mark its 10th anniversary.

Influencer Arthur Hayes commented that CryptoPunks may become a prominent collection again, surpassing Ethereum’s appeal. 

Yat Siu, the chairman of Animoca Brands, also believes NFTs will return this bull cycle and boost Ethereum’s influence. 

CryptoPunks retain top status

CryptoPunks recovered its floor price to over 48 ETH, raising the value of the entire 10,000-item collection. The current price floor is the highest since March 2024, and marks a six-month expansion. 

The collection grew its trading to over 690 ETH per day. CryptoPunks are considered a blue chip NFT, and among the few to be offered through a Sotheby’s auction. 

The collection is drawing attention, as the items are also connected to DeFi. One personal collection is used as collateral to borrow $15M. To retain the 112 items acquired at launch for just $200, the early buyer pays $5,500 in daily interest. In the meantime, the collection has grown in value, and the backstory of the NFTs makes them even more interesting. 

The usage of NFTs as collateral may also be a precursor to corporate collections, especially for Ethereum treasury companies. So far, no BTC treasury company has owned Ordinals, unless the collectible items were sent as a gimmick to the treasury wallets.

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