GameSquare vault acquires NFT! $5.15 million preferred stock acquisition of the Cowboy Ape "CryptoPunk #5577", locking in DeFi annual yield.

GameSquare, an Ethereum vault company, announced that it will issue and sell $5.15 million in preferred stock to acquire the rare "Cowboy Ape" NFT: CryptoPunk #5577 from Compound protocol founder Robert Leshner. (Background: Ethereum climbs to $3850! GameSquare increases position by $30 million ETH: raising reserve cap to $250 million) (Additional context: The "female stock god" enters Ethereum! Ark Invest BitMine $182 million; SharpLink Gaming buys another 80,000 ETH) Nasdaq-listed GameSquare, which is also currently one of the largest Ethereum reserve companies, announced yesterday (24th) that its board of directors has approved the purchase of the rare "Cowboy Ape" NFT: CryptoPunk #5577 for $5.15 million in preferred stock from DeFi giant Compound protocol founder Robert Leshner. The strategy behind the NFT acquisition According to the official announcement, this is GameSquare's first direct purchase of an NFT. As part of the transaction, GameSquare will issue and sell $5.15 million in preferred stock to Robert Leshner, which can be converted into 3.4 million shares of GameSquare common stock, valued at $1.50 per share. In this regard, GameSquare CEO Justin Kenna emphasized: "Acquiring CryptoPunks demonstrates our belief in the long-term value of digital identity, decentralized ownership, and on-chain cultural capital. Incorporating Cowboy Ape into the vault is not only a strategic investment but also part of GameSquare's differentiated fund management strategy. Additionally, we warmly welcome one of the most respected investors in the cryptocurrency space, decentralized finance pioneer Robert Leshner, as our shareholder." GameSquare added that the company will not simply place this rare NFT into a Cold Wallet but plans to lock the artwork into a DeFi protocol minting yield-generating stablecoin through an NFT revenue scheme, aiming for an annualized return of 6-10%, intending to transform collectibles that are originally "left to appreciate" into financial instruments that can continuously generate cash flow. The cultural and financial dual value of the rare Cowboy Ape CryptoPunk #5577 is a rare NFT from the CryptoPunks series launched by Larva Labs in 2017, belonging to only 24 Ape types, featuring a cowboy hat with only a 1% chance of occurrence, making its rarity highly recognizable in the collector's circle, ranking 19th in rarity among 10,000 CryptoPunks. Robert Leshner purchased CryptoPunk #5577 in 2022 for 2,501 ETH (approximately $7.7 million), setting the second-highest transaction record for the CryptoPunks series. Adopting the Ethereum vault strategy Additionally, GameSquare positions itself as a media, entertainment, and technology company, owning brands such as FaZe Clan, but this year, the company officially announced that it would incorporate Ethereum as a core reserve asset. Currently, the company has increased its Ethereum vault authorization amount to $250 million and added a $10 million ETH position, holding approximately 12,913.49 ETH in total. According to Google Finance data, driven by its Ethereum vault strategy, the company’s stock (GAME) has risen 75% over the past month, bringing its total market capitalization to $139 million. Related reports: Ethereum ICO whale silent for four years transfers ETH to exchange, what’s next after being blocked at $3800? SharpLink Gaming increases position by 4,904 Ethereum "unrealized gains of $260 million", SBET skyrockets nearly 3 times this month. Consensys: How will Ethereum as a "trustworthy software system" reshape the global digital economy? <GameSquare Vault acquires NFT! $5.15 million preferred stock acquisition of Cowboy Ape "CryptoPunk #5577", locked in DeFi annualized returns> This article was first published in BlockTempo, the most influential blockchain news media.