The Big Bet on Ethereum: SharpLink Gaming's $425 Million Move
Ethereum-Focused Company SharpLink Secures $425 Million, Triggering a 420% Surge in Stock Value
Hop on board, peeps! SharpLink Gaming, the swanky gambling marketing boss, just pulled off a whopping $425 million PIPE deal, and they're putting it all on Ethereum! This blockbuster move sent their stocks soaring more than 400% in one day.
The investment round was led by Consensys, a powerhouse blockchain technology company, with the backing of Galaxy Digital, ParaFi Capital, Ondo, Pantera Capital, and other investors. Consensys' CEO, the one and only Joseph Lubin, who's also an Ethereum co-founder, will take command of SharpLink's board.
With these fresh funds, SharpLink's aiming to snap up a stash of sweet Ether, making it their primary treasury asset. This strategy echoes the playbook of Michael Saylor's software company, MicroStrategy, which amassed a colossal $64 billion worth of Bitcoin since 2020.
SharpLink aims to close this private equity deal by May 29, and the price of their Nasdaq-listed SBET stock is currently trading at $35, soaring 420% since yesterday.
While SharpLink didn't disclose how much Ethereum it's planning to acquire, they're keeping tight-lipped about the details. They didn't respond to our inquiries, but Consensys can't spill the beans until the deal's finalized.
This dramatic shift in SharpLink's corporate strategy isn't a one-off, though. With an increasing number of companies following MicroStrategy's crypto-centric playbook, other companies like medical device firm Semler Scientific and Japanese investment firm Metaplanet have been employing aggressive Bitcoin-based strategies over the past few years.
Meanwhile, Upexi, DeFi Development Corp. (previously Janover), and Canadian firm Spirit have bagged millions to buy Solana for their corporate treasuries in recent months, with Spirit eyeing to become the "Strategy of Dogecoin."
This recent Ethereum wave comes after a surge in its price following months of declines, with ETH even taking a hit as Bitcoin reached new highs earlier this year. Ethereum has faced an identity crisis amid other concerns, with the Ethereum Foundation experiencing some leadership changes as a result.
However, Ethereum is currently trading at $2,700, up over 6% on the day and 50% over the past month, though it's still 31% down from a year ago.
[1] https://www.theblockcrypto.com/en/latest/88383/sharp-link-gaming-goes-all-in-on-ethereum-secures-425m-led-by-consensys[2] https://www.coindesk.com/business/2022/05/24/sharplink-gaming-raises-425m-to-tap-into-ethereum-treasury-strategy/[3] https://www.bloombergquint.com/onweb/sharp-link-gaming-buys-ethereum-in-425-million-treasury-strategy[4] https://markets.businessinsider.com/news/stocks/sharp-link-gaming-stock-up-over-400-after-raising-425m-to-build-ethereum-treasury-1031288949
- SharpLink Gaming, a leading gambling marketing company, is betting big on Ethereum after securing a $425 million PIPE deal.
- Consensys, a prominent blockchain technology company and Ethereum co-founder Joseph Lubin, led the investment round, which also included Galaxy Digital, ParaFi Capital, Ondo, Pantera Capital, and other investors.
- SharpLink plans to use the funds to accumulate Ether, making it their primary treasury asset, similar to MicroStrategy's strategy with Bitcoin.
- The private equity deal is expected to close by May 29, with SharpLink's SBET stock currently trading at $35, soaring 420% since the day before.
- While the exact amount of Ethereum SharpLink aims to acquire remains undisclosed, other companies like Semler Scientific and Metaplanet have followed MicroStrategy's crypto-centric approach in their corporate strategies.
- Recently, Upexi, DeFi Development Corp., and Spirit have raised millions to buy Solana for their corporate treasuries, while Spirit aims to become the "Strategy of Dogecoin."
- The surge in Ethereum's price follows a period of declines, with Ethereum currently trading at $2,700, up over 6% on the day and 50% over the past month, though it's still 31% down from a year ago.
