SharpLink Gaming’s Bold Move: Aiming Big with Ethereum

Backed by Joseph Lubin, SharpLink Gaming is making waves by significantly boosting its equity sale to snap up more Ether (ETH). In just nine days, the corporate added a whopping $515 million value of ETH to its treasury.

Upping the Ante: Equity and Ether

SharpLink recently filed a prospectus complement with the US Securities and Exchange Commission, announcing an enormous increase in its common stock sale capability—from $1 billion to a staggering $5 billion. The plan? Use the majority of those funds to grow to be an excellent larger player within the Ethereum market.

According to the prospectus, SharpLink is committed to investing a big portion of the proceeds in acquiring Ether. They also plan to make use of some funds for working capital, corporate expenses, and their mainstay online marketing operations.

With a possible $6 billion investment in ETH, SharpLink could soon command nearly 1.38% of the entire circulating supply of Ether. That’s a position of considerable influence within the crypto arena.

ETH Acquisition: Onward and Upward

As of Monday, SharpLink emerged as the most important corporate holder of ETH. A recent post on X suggests that the corporate is setting its sights on holding a cool 1 million ETH in its treasury. Currently, they’ve over 280,000 ETH, with a powerful 99.7% staked.

Between June 2 and July 15, SharpLink generated 415 ETH as staking rewards, amounting to $1.49 million. Following their regulatory filing, the corporate purchased one other 32,892 ETH, valued at $115 million, pushing their nine-day acquisition total to $515 million, as per Lookonchain data.

Galaxy Research identified that SharpLink surpassing the Ethereum Foundation’s ETH holding is a bullish sign for the ecosystem, potentially driving more interest and confidence.

Market Movements: Stock Dips Amidst Growth

Despite these daring moves, SharpLink Gaming’s stock (SBET) hasn’t had the smoothest ride. Thursday saw a 2.62% dip, closing at $36.40. After-hours trading wasn’t kind either, with an extra 4.95% drop to $34.60, reported by Google Finance.

Year-to-date, SBET boasts a 350% increase, though it’s still down 54% from its peak on May 29 of $79.21. The March quarter wasn’t too rosy, with a 24% year-on-year revenue decline and a net profit margin drop of 110%.

Looking ahead, all eyes are on the corporate’s upcoming quarterly results, scheduled for August 13, as per Nasdaq. Investors and analysts alike can be keen to see how SharpLink’s aggressive Ether strategy plays out in its financials.