Ethereum Provider, Sharplink, Buys $462 Million Worth of ETH, Yet Stocks Plummet
SpicyTake: SharpLink Gaming just dropped a bombshell, gobbling up over $462 million worth of Ethereum (ETH). Now they're the largest public Ethereum holder, trailing only the Ethereum Foundation. They purchased 176,270.69 ETH at an average price of $2,626, before effectively turning into "ETH Whales" 🐳
In a recent press release, the company revealed its new digitally-infused financial plan. To fund their massive ETH acquisition, they raised a whopping $425 million through a private placement and another $79 million via an ATM equity offering. They're serious about building a substantial crypto reserve, fam!
Since making the move, SharpLink has seen an 11.9% increase in ETH per share, with 95% of their ETH juicily invested in staking and liquid staking protocols. That means they're contributing to Ethereum's network security while earning some passive yield 🍔
But don't let the excitement blind you - the stock market wasn't exactly jumping for joy. After the announcement, SharpLink's stock, SBET, took a nose-dive. On Thursday, it dropped 12.25%, closing at $32.50. Shockingly, it plummeted even more in after-hours trading, dipping as low as $8. By Friday, it had crawled back up to $11.05, still down over 66% in just one day.
To clear the air, SharpLink Chairman Joseph Lubin took to Twitter (in characteristic blunt style) to clarify that the US Securaries and Exchange Commission (SEC) filing didn't indicate any current sales. He explained it merely registered shares for potential future resale by past investors. Fear of dilution, people! 🏹
Now, here's a tantalizing secret: with their ETH acquisition, SharpLink is setting a trend, becoming the first publicly-traded company to heavily invest in Ethereum. That's not all - their strategic move might even spur on US legislation supporting digital asset frameworks. Watch this space! 👀
SharpLink Gaming's recent strategic move to heavily invest in Ethereum not only made them one of the largest public Ethereum holders but also opened a new path for crypto trading, as they're staking a significant portion of their ETH for passive yield in the finance sector. Despite the initial stock market drop following the news, the company's focus on Ethereum could potentially encourage US legislation supporting digital asset frameworks.
