SharpLink Gaming's $400 Million Deal Aims to Expand Ether Holdings
According to Cointelegraph, SharpLink Gaming, a company transitioning from sports betting marketing to an Ether treasury firm, experienced a decline in its stock value on Monday following the announcement of a substantial $400 million agreement intended to bolster its cryptocurrency assets. The firm disclosed that it has entered into a share purchase agreement with five global institutional investors, aiming to enhance its Ether (ETH) holdings, which are projected to surpass $3 billion in value. The shares are priced at $21.76 each, with the transaction expected to finalize on Tuesday, contingent upon certain conditions.
SharpLink Gaming, chaired by Ethereum co-founder Joseph Lubin, holds the second-largest ETH reserves among publicly traded companies. It is among numerous firms recently engaging in capital raising efforts to acquire cryptocurrencies. Despite the announcement, SharpLink's stock (SBET) closed down over 6.6% at $22.34 on Monday, though it saw a slight recovery in after-hours trading, rising nearly 3.5% to $23.10. This decline reversed some of the gains from the previous five trading days, where the stock had peaked at over $28 before the drop.
The company has seen a significant increase in its stock value, up 17.5% over the last five trading days and 189% year-to-date, following its initial Ether purchases in May. In mid-June, SharpLink's shares plummeted 73% in a single after-hours session after filing to potentially resell 58.7 million common shares, prompting Lubin to clarify on social media that the filing was standard procedure. As of Sunday, SharpLink has accumulated 598,800 ETH, valued at approximately $2.57 billion, with Ether trading around $4,300. Its holdings are second only to BitMine Immersion Technologies, which possesses over 1.15 million ETH worth nearly $5 billion.
SharpLink has raised nearly $900 million in the past week, a move co-CEO Joseph Chalom believes highlights market confidence in the company's ETH treasury strategy. He emphasized that the rapid and substantial investments reflect investor trust in SharpLink and the growing recognition of Ethereum's transformative potential. Last Thursday, SharpLink announced a $200 million share purchase agreement with four unnamed institutional investors, following a $264.5 million net proceeds raise through an at-the-market offering earlier in the week. The firm still has approximately $200 million in at-the-market proceeds yet to be utilized.
Meanwhile, Ether has rebounded to near its all-time high after a period of underperformance compared to Bitcoin. Although ETH has remained stable over the past day, it has surged 44.5% in the last 30 days, climbing from below $3,000 to above $4,300 on Monday, according to CoinGecko. It is currently trading at $4,278, just over 12% shy of its all-time high of $4,878 reached on November 10, 2021.
