It is a "Texas cent" you can make them by putting a cent between two pieces of leather and pounding it with a hammer. It enlarges the coin without losing the design.
Looks like a "Texas Penny", hammered between 2 pieces of leather to mash the coin flatter and larger in diameter.
Now the next question to ask?.. Why would someone do this?.. Because they can Because they were bored Because the wanted to create confusion And just in case.. Is it worth anything more than 1 Cent? The answer would be no!