SharpLink Gaming, once a sports betting marketing outfit now pivoting hard into an Ethereum treasury powerhouse, saw its stock take a hit Monday after unveiling a $400 million deal to fuel its crypto-buying spree. The company, chaired by Ethereum co-founder Joseph Lubin, announced a share purchase agreement with five unnamed global institutional investors, a move set to supercharge its Ether (ETH) holdings, which it claims will soon top $3 billion in value. The deal, priced at $21.76 per share and expected to close Tuesday pending conditions, follows a whirlwind week of fundraising that saw SharpLink pocket nearly $900 million. This includes a $200 million share purchase last Thursday and a $264.5 million at-the-market offering earlier in the week. With another $200 million in unspent proceeds, SharpLink is doubling down on its strategy to amass ETH, positioning itself as a heavyweight in the growing trend of public companies betting big on cryptocurrencies.
Stock Stumbles, Then Steadies
SharpLink’s stock (SBET) didn’t take kindly to the news, sliding 6.6% to close at $22.34 on Monday, erasing some of the 17.5% gains it racked up over the past five trading days. The dip came despite the stock hitting a high of $28 earlier in the session. After-hours trading offered some relief, with shares climbing 3.5% to $23.10. Year-to-date, SharpLink’s stock is still up an impressive 189%, fueled by its pivot to ETH accumulation since May. The market’s reaction echoes a mid-June episode when SharpLink’s shares cratered 73% in after-hours trading after a filing to potentially resell 58.7 million shares. Lubin took to X to downplay the sell-off, calling the filing a routine move and urging investors not to misread the company’s intent.
Ethereum Treasury Titan
With 598,800 ETH in its coffers—worth roughly $2.57 billion at current prices of $4,300 per ETH—SharpLink ranks as the second-largest ETH holder among public companies, trailing only BitMine Immersion Technologies, which holds 1.15 million ETH valued at nearly $5 billion. SharpLink’s aggressive ETH accumulation reflects a broader corporate shift toward crypto treasuries, with co-CEO Joseph Chalom touting the $900 million raised in a week as proof of “investor confidence in our ETH treasury strategy and Ethereum’s game-changing potential.”
Ether’s Resurgence
The timing of SharpLink’s moves aligns with Ether’s recent rally. After months of trailing Bitcoin, ETH has surged 44.5% in the past 30 days, climbing from under $3,000 to a high above $4,300 on Monday, according to CoinGecko. At $4,278, it’s within striking distance of its all-time high of $4,878 set in November 2021. The resurgence has fueled optimism about Ethereum’s role in decentralized finance (DeFi), with some analysts speculating that treasury companies like SharpLink could ignite a “DeFi Summer 2.0.”
Risks and Rewards
SharpLink’s bold pivot isn’t without risks. Ethereum co-founder Vitalik Buterin recently warned treasury firms against overleveraging, a nod to the volatility that can hammer crypto-heavy balance sheets. Still, SharpLink’s rapid fundraising and Lubin’s involvement signal a calculated bet on Ethereum’s long-term dominance in the blockchain space. Whether the market warms to SharpLink’s crypto gamble remains to be seen, but for now, the company is all-in on ETH—and it’s not slowing down.
