TLDR
- SharpLink Gaming announced a $400 million share purchase agreement to increase Ethereum holdings
- Stock closed down 6.6% at $22.34 on Monday after fluctuating between $24-28
- Company expects ETH holdings to exceed $3 billion in value
- SharpLink has raised nearly $900 million in the past week for its ETH treasury
- Currently holds 598,800 ETH worth approximately $2.5 billion
SharpLink Gaming, a former sports betting marketing firm that has transformed into an Ethereum treasury company, has entered into a $400 million share purchase agreement with five global institutional investors. The deal aims to boost the company’s Ethereum (ETH) holdings, which it expects will exceed $3 billion in value.
The agreement, announced on Monday, involves selling shares at $21.76 each for total proceeds of $400 million. The transaction was expected to close on Tuesday, pending certain conditions.
Despite the news, SharpLink’s stock closed Monday’s trading session down 6.6% at $22.34, after reaching as high as $28 earlier in the day. The stock recovered slightly in after-hours trading, gaining nearly 3.5% to $23.10.
The drop on Monday reversed some of the gains the stock had enjoyed over the previous five trading days. However, SharpLink remains up 17.5% over that period and has seen a 189% increase so far this year since it began purchasing Ethereum in May.
As of August 10, SharpLink has accumulated 598,800 ETH, currently valued at approximately $2.5 billion with Ethereum trading around $4,300. This makes SharpLink the company with the second-largest ETH holdings among public companies.
Corporate Ethereum Treasury Boom
SharpLink Gaming is part of a growing trend of companies raising capital specifically to buy cryptocurrencies. The firm has raised nearly $900 million in the past week alone for its Ethereum treasury strategy.
Joseph Chalom, SharpLink’s co-CEO, stated that the recent investments “underscore the market’s confidence in SharpLink’s ETH treasury strategy” and reflect “the growing recognition of Ethereum’s transformative potential.”
Prior to this latest deal, SharpLink had made a $200 million share purchase agreement with four institutional investors on Thursday. Days earlier, on August 5, the company raised $264.5 million in net proceeds through an at-the-market offering.
The company has stated that it still has about $200 million in at-the-market proceeds yet to be used. SharpLink’s goal is to accumulate 1% of Ethereum’s total circulating supply, which would be over 1.2 million ETH.
Ethereum’s Market Performance
Ethereum has seen a remarkable comeback in recent weeks, approaching its all-time high after months of lagging behind Bitcoin.
The cryptocurrency has gained 44.5% in the past 30 days, climbing from below $3,000 to above $4,300 on Monday. It’s currently trading at around $4,220, just over 13% off its all-time high of $4,878 reached on November 10, 2021.
The surge in Ethereum’s price comes amid the corporate Ethereum treasury boom. Publicly traded firms, including BitMine, EtherMachine, and Bit Digital, collectively hold several billion dollars worth of Ethereum.
According to a Standard Chartered analyst, these holdings could soon account for 10% of all Ethereum in circulation. More than 75% of users on the crypto-native prediction market Myriad believe that Ethereum will surpass its record price before the end of the year.
BitMine Immersion Technologies currently leads as the company with the largest ETH holdings among public companies, with over 1.15 million ETH worth nearly $5 billion.
Ethereum co-founder Joseph Lubin serves as SharpLink’s chair, adding credibility to the company’s Ethereum-focused strategy.
In mid-June, SharpLink’s shares experienced a significant drop of 73% in a single after-hours trading session after the company filed to potentially resell 58.7 million of its common shares. Lubin took to social media platform X to clarify that some were “misinterpreting SBET’s” filing, which he described as a standard procedure.
The recent surge in corporate interest in Ethereum follows a two-year period in which the token languished despite a broader crypto market upswing.
SharpLink Gaming continues to position itself as a major player in the corporate Ethereum treasury space, with its holdings trailing only BitMine Immersion Technologies.
