- SharpLink bought 176,271 ETH worth $463M, becoming the largest public ETH holder.
- The firm’s shares fell 66% after a regulatory filing allowed potential share resale.
- Over 95% of SharpLink’s ETH is deployed in staking to earn yield and support Ethereum.
Minnesota-based marketing and sports betting technology firm SharpLink Gaming, which is listed on Nasdaq, has announced its purchase of 176,271 ether (ETH) worth approximately $463 million.
With this acquisition, SharpLink will be the largest publicly traded stockholder of Ether in the world and second only to the Ethereum Foundation in total ETH holdings. In a press release Friday, the company affirmed the move, noting its intention to make Ethereum the focus of its treasury strategy.
The acquisition was financed through a combination of a $425 million private placement and $79 million raised via at-the-market (ATM) equity sales. Prominent participants in the private placement included ConsenSys, Galaxy Digital, Pantera Capital, and other institutional crypto firms. According to company filings, the purchased Ether was at an average price of $2,626 per coin. The majority of these holdings have already been deployed in staking or liquid staked on platforms to generate yield and support Ethereum network security.
Stock Price Swings and Shareholder Reaction to ETH Treasury Pivot
Despite the magnitude of SharpLink’s investment, the company’s share price suffered significant volatility following the announcement. After a regulatory filing on Thursday revealed that private placement investors could resell up to 68 million common shares, SharpLink’s stock fell by 70% in after-hours trading. By Friday, shares remained down by 66% but were still up over 500% from levels before the company first announced its ETH treasury pivot in late May.
The rapid stock movements followed a 4,300% surge earlier in the month, triggered by SharpLink’s initial announcement of its ETH-focused treasury strategy. The recent drop in price occurred due to confusion over the regulatory filing which some investors wrongly saw as immediate insider selling instead of a standard SEC procedure. Joseph Lubin, the company chairman and Ethereum co-founder, later clarified the intent explaining that the filing did not represent an actual sale but rather permitted possible future share resales.
Institutional Adoption and Broader Market Context for ETH Treasuries
SharpLink’s strategy reflects well-known practices in the digital asset space, akin to MicroStrategy’s focus on Bitcoin. By designating Ether as its main treasury reserve asset the company intends to provide shareholders with substantial economic exposure to Ethereum. Currently, over 95% of the company’s ETH assets are engaged in staking protocols generating yield while contributing to the security of the Ethereum network.
The move makes SharpLink one of the many publicly traded companies and funds that are incorporating cryptocurrencies into their balance sheets. Data from Arkham shows only the Ethereum Foundation holds more Ether, with 214,129 ETH in reserve. Some exchange-traded funds, including BlackRock’s iShares Ethereum Trust, also hold large amounts of ETH on behalf of clients, but these are custodial holdings rather than direct corporate reserves.
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