SharpLink Gaming has significantly expanded its treasury with a major acquisition of Ethereum, adding $176 million in ETH to its assets last week. The Minneapolis-based firm, which trades on Nasdaq, has shifted its corporate strategy since May to focus on accumulating Ethereum, positioning itself as a key player in the cryptocurrency market.
The company disclosed that its total holdings have now reached 837,230 ETH, valued at nearly $3.6 billion. This latest purchase of 39,008 ETH, acquired between August 25 and August 31 at an average price of approximately $4,531 per token, reflects SharpLink’s aggressive strategy to capitalize on market opportunities.
Co-CEO Joseph Chalom stated, “We remain opportunistic in our capital raising initiatives and will continue to closely monitor market conditions to maximize shareholder value.” This commitment to capitalizing on favorable conditions illustrates SharpLink’s proactive approach in an evolving market landscape.
In addition to its Ethereum acquisitions, the firm raised $46.6 million through its at-the-market (ATM) equity facility as part of its growth strategy. However, despite its considerable gains, SharpLink’s stock saw a decline of over 5%, trading at around $16.89 on Tuesday. Since mid-May, the price per share has skyrocketed more than 400%, transitioning from less than $3.
SharpLink’s pivot from a traditional gambling marketing company to a crypto treasury reminiscent of Strategy—previously known as MicroStrategy—highlights a notable trend among publicly traded companies. Strategy famously transitioned from software development to acquiring Bitcoin in 2020, aiming to counteract years of losses and low share prices. Unlike Strategy’s Bitcoin focus, SharpLink opted for Ethereum, the second-largest cryptocurrency by market capitalization.
There was previous optimism among traders that SharpLink might acquire a total of 1 million ETH by September 16. However, this speculation has since turned bearish; only about 30% of traders currently believe in reaching that target, a sharp drop from 57% just the evening before the recent announcement.
Other publicly traded companies are also following the path of accumulating significant cryptocurrency assets, purchasing various coins like Bitcoin, XRP, Solana, and BNB in a bid to enhance shareholder value.
As of now, Ethereum is trading at roughly $4,300, witnessing a slight decline of about 1% within a 24-hour period. Despite this recent downturn, Ethereum has increased over 23% in value over the past month. It reached a new all-time high of $4,946 in August, surpassing a previous 2021 record, even as Bitcoin and other prominent cryptocurrencies achieved new peaks in value.
In this evolving landscape, SharpLink Gaming’s strategic maneuvers reflect a broader shift in corporate investment strategies, embracing cryptocurrency as a vital asset class in their portfolios.
