Sharplink reveals a $463 million Ethereum treasury move to strengthen its crypto holdings and long-term blockchain investment strategy
Sharplink Gaming, a sports wagering platform, has become Ethereum’s largest publicly traded holder due to its $463M ETH treasury strategy.
Through its new Strategy, the organization accumulates 176,271 Ether coins, replacing Bitcoin (BTC) with Ethereum.
The acquisition was financed by at-the-market equity sales and private placements, with $79 million raised since May 30. SharpLink is the inaugural Nasdaq-listed organization implementing a treasury reserve policy prioritizing Ethereum (ETH).
According to reports, Sharplink promptly resolved to stake most of its recently acquired Ethereum, approximately 95%. This method generates yield and enhances Ethereum’s network’s security, thereby reconciling financial gain with contribution to the Ethereum network.
Rob Phythian, SharpLink’s CEO, characterized the ETH acquisition as a “landmark moment” for the company and the broader landscape of public companies adopting digital currencies. The CEO stated this week that “Ether is now the cornerstone of our treasury strategy.”
Sharplink Adheres to an Expanding Crypto Investment Strategy
Sharplink’s action is comparable to that of Strategy, another prominent organization. The tech firm led by Michael Saylor is the largest institutional investor in Bitcoin and has experienced a significant increase in revenue and value since implementing this Strategy. Pardon the pun.
BlackRock and GameStop are among the organizations that have implemented comparable strategies regarding cryptocurrency. Sharplink’s objective is to succeed with the Ethereum cryptocurrency even though the latter’s venture has not yet gained momentum.
Joseph Lubin, the co-founder of Ethereum and chairman of SharpLink, also characterizes the Strategy as a “pivotal milestone” in institutional adoption. Lubin observes that SharpLink’s dedication to staking improves the integrity of the Ethereum network and generates additional ETH rewards.
Lubin stated, “This is an example of innovation in action—capital allocation that benefits both the Ethereum ecosystem and corporate growth.”
At the time of publication, Ethereum is trading at $2,550, a 7% decrease from the previous day. Today’s decline has nearly negated ETH’s gains over the past week, resulting in a mere 2% increase over the past seven days.
In the interim, SharpLink’s approach has incited controversy and volatility among SBET investors. Investor enthusiasm was evident in the company’s stock price, which increased by more than 400% after its initial ETH treasury announcement on May 27.
Nevertheless, a recent S-3 SEC filing resulted in a precipitous 73% decline in after-hours trading on Thursday, as shares plummeted from $32.53 to below $8. SBET is trading at just over $10 per share at the time of publication.
