SharpLink Gaming, a publicly traded entity specializing in sports and online casino marketing, is making significant strides toward becoming the largest corporate holder of Ethereum (ETH).
Key developments include:
- SharpLink Gaming’s Ethereum reserves have soared to $612 million.
- The company recently secured $64 million, directing $37 million toward additional ETH purchases and staking.
- It is on a course to surpass the Ethereum Foundation as the leading corporate holder of ETH.
According to Joe Lubin, co-founder of Ethereum and chair of SharpLink’s board, the firm has been acquiring tens of millions of dollars’ worth of ETH daily. This rapid accumulation positions SharpLink to potentially overtake the Ethereum Foundation, which currently holds approximately $725 million in ETH. The company’s shares, listed on Nasdaq, have risen over 8% during pre-market trading today.
SharpLink’s Ethereum Holdings Reach $612 Million
As of Thursday, SharpLink’s cryptocurrency reserves consist of approximately $612 million in Ethereum. “We are consistently accumulating more—we’re able to acquire tens of millions of dollars in Ether each day,” Lubin stated in an interview with Finance Newso.
This strategic shift marks a new era for SharpLink. In May, CEO Rob Phythian announced intentions to broaden the company’s focus beyond its traditional operations by raising about $425 million from investors, including Consensys, aimed at bolstering its Ethereum purchases and making ETH the primary treasury reserve asset.
This strategy draws parallels to that of Strategy, a software firm that has gathered $67 billion in Bitcoin since 2020. Following SharpLink’s announcement, its stock surged nearly 2,700%, peaking at $124 on May 30, although it later experienced a significant drop of 75% after an SEC filing allowed insiders to sell shares.
Lubin reassured stakeholders via social media that neither he nor Consensys had sold any shares, labeling the filing a routine procedure. Between June 28 and July 4, SharpLink successfully raised $64 million, dedicating $37 million to continue acquiring Ethereum.
The firm has also staked its entire ETH holdings, generating 322 ETH in staking and restaking rewards since early June. The Strategic ETH Reserve tracker indicates that 46 entities collectively hold more than 1.3 million ETH, valued at over $3.6 billion, with SharpLink currently positioned as the second-largest corporate holder, trailing the Ethereum Foundation yet ahead of Coinbase and others.
After dipping below $10 in mid-June, SharpLink’s stock has since increased to $18. Concurrently, Ethereum’s price reached $2,967 on Thursday, marking its highest point since early February.
More Public Companies Diversify into Crypto
In line with the example set by Michael Saylor’s Strategy, a growing number of public companies are diversifying their portfolios by incorporating cryptocurrencies like BTC, ETH, SOL, and XRP. Recently, BIT Mining announced plans to raise between $200 million and $300 million to create a treasury in Solana (SOL) as part of its expansion into the burgeoning blockchain sector.
Last week, DeFi Development Corp. disclosed that it had acquired $2.7 million worth of Solana as part of its aggressive crypto treasury initiative. Additionally, Canadian digital asset firm Sol Strategies, already listed on the Canadian Securities Exchange, holds over 420,000 SOL tokens, thereby establishing its significance within Solana’s ecosystem.
Last month, the firm filed to list its common shares on the Nasdaq Capital Market under the ticker “STKE,” reflecting its intent to ramp up its expansion into the U.S. market.
The post SharpLink Stock Soars as It Doubles Down on Ethereum Treasury Strategy appeared first on Finance Newso.
