SharpLink Gaming has announced its decision to tokenize its SEC-registered common stock (SBET) directly on the Ethereum blockchain, leveraging Superstate’s Opening Bell platform for this innovative venture. This marks a significant step in integrating traditional finance with the burgeoning world of decentralized finance.
The Nasdaq-listed company, recognized for building one of the largest public Ethereum treasuries, currently holds over 838,000 ETH, valued at approximately $3.3 billion. This latest move follows recent stock buybacks, signaling a strategic pivot as the company aims to modernize its operations amid ongoing initiatives by the SEC to innovate digital asset regulations.
The tokenization of SBET shares will utilize Superstate as its digital transfer agent, enabling shareholders to maintain their equity positions on Ethereum while ensuring adherence to regulatory frameworks. These tokenized shares will possess the same legal standing as traditional book-entry equity but offer the added benefits of being stored in self-custodied wallets, facilitating integration with various digital financial products.
SharpLink Gaming is positioning itself as a pioneer in this endeavor, claiming to be the first publicly traded company to tokenize its shares on Ethereum. However, some industry observers point out that another publicly traded entity, BTSC, announced a similar trajectory earlier in 2023.
This move resonates with the SEC’s recent Project Crypto initiative, which was unveiled in July with the aim of alleviating regulatory pressures on the crypto sector. SEC Chair Paul Atkins has expressed intentions to introduce an “innovation exemption” for specific digital assets by the year’s end, potentially fostering a more conducive environment for projects like SharpLink’s.
Joseph Chalom, Co-CEO of SharpLink, emphasized that tokenizing the company’s equity is not only a technological milestone but also reflects a broader vision of the future trajectory of global capital markets. Superstate, which has previously collaborated with notable firms such as Galaxy Digital, is set to explore the future of tokenized equities within automated market makers and decentralized finance protocols while adhering to existing securities regulations.
In addition to its ambitious tokenization plans, SharpLink’s crypto strategies have taken shape over the past year, particularly after a strategic shift from gambling marketing to becoming a significant player in the crypto treasury space. The recent appointment of Ethereum co-founder Joseph Lubin as chairman further underscores the company’s commitment to this new direction, particularly after a robust $425 million funding round led by Consensys.
Despite the momentum in tokenization and strategic asset management, SharpLink faces competition in the Ethereum holding arena. According to data from StrategicETHReserve.xyz, BitMine Immersion Technologies currently outpaces SharpLink with a reported 91.2% probability of holding more ETH by the last week of 2025, holding approximately $9.6 billion worth of Ethereum.
Recent market trends indicate a slight downtrend for Ethereum, which is currently trading at $3,968, reflecting a decline of almost 5% over the last 24 hours and a 13% decrease over the past week. SharpLink has taken a measured approach to its asset accumulation, buying large amounts of ETH earlier in the year while recent purchases have significantly slowed.
Moreover, the company executed a repurchase of 1 million SBET shares last week at an average price of $16.67, contributing to a total of 1.93 million repurchased shares under its comprehensive $1.5 billion buyback program. Currently, SBET shares are trading at approximately $16.34, reflecting a daily drop of around 7%.
As the landscape of tokenized equity and cryptocurrencies evolves, SharpLink Gaming’s strategic initiatives may pave the way for an innovative future combining the realms of traditional finance and digital assets.
