GameSquare Acquires Iconic Cowboy Ape CryptoPunk from DeFi Pioneer Robert Leshner

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 returns

Increases Ethereum treasury holdings to over $52 million

FRISCO, Texas, July 24, 2025 /PRNewswire/ -- 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, we operate one of the largest gaming media networks in North America. Complementing our operating strategy, GameSquare operates a blockchain-native Ethereum treasury management program designed to generate onchain yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation. 

To learn more, visit www.gamesquare.com.

Forward-Looking Statements:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's future performance, revenue, growth and profitability; and the Company's ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's ability to grow its business and being able to execute on its business plans, the success of Company's vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company's most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

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SOURCE GameSquare