SharpLink Targets Ethereum Foundation’s $725M Ether Reserve: What’s Next?
SharpLink Gaming Poised to Become Largest Corporate Holder of ethereum
SharpLink’s Ambitious ethereum Acquisition Strategy
SharpLink Gaming, a publicly traded company specializing in sports and online casino marketing, is on track to become the largest corporate holder of ethereum. According to Joe Lubin, co-founder of ethereum and chairman of SharpLink’s board, the company is currently purchasing “tens of millions of dollars” worth of Ether on a daily basis.
At its current acquisition rate, SharpLink is set to surpass the ethereum Foundation, which currently holds approximately $725 million in ethereum. As of the latest reports, SharpLink’s holdings stand at around $612 million.
A Bold Move into Cryptocurrency
This significant investment in cryptocurrency marks a strategic shift for SharpLink. CEO Rob Phythian revealed the company’s plans to expand beyond its traditional business model earlier this year. In May, SharpLink raised about $425 million from investors, including Consensys, with the intention of using these funds to bolster its ethereum reserves, which are now seen as the primary treasury asset for the company.
This strategy echoes that of Strategy, a software firm that has accumulated a staggering $67 billion in Bitcoin since 2020. Lubin noted that ethereum‘s relative underperformance compared to Bitcoin and Solana motivated him to adopt a similar approach.
Following the announcement of its new strategy, SharpLink’s stock skyrocketed by 2,700%, peaking at $124 on May 30. However, the stock price experienced a significant decline shortly thereafter, dropping 75% after the company filed with the SEC, allowing insiders to sell shares. Lubin clarified that this filing was a routine procedure and confirmed that neither he nor Consensys had sold any shares.
Insights on ethereum‘s Future
In a recent interview, Lubin discussed ethereum‘s current state and its performance compared to Bitcoin. He expressed confidence that the future of online activity will increasingly shift to blockchain technology, with ethereum positioned to capitalize on this trend.
Funding ethereum Purchases Through Stock Sales
SharpLink continues to finance its ethereum acquisitions by selling shares. The company reported raising $64 million between late June and early July, with $37 million earmarked for further ethereum purchases. Additionally, SharpLink has deployed all of its ethereum holdings into staking and restaking protocols to generate yield, earning 322 ethereum since June 2.
The Strategic ETH Reserve website monitors all entities holding over 100 ethereum. Currently, 46 entities possess more than 1.3 million ethereum, valued at over $3.6 billion. The leading holders include the ethereum Foundation, SharpLink, PulseChain, Coinbase, and the Golem Foundation.
After experiencing a drop below $10 on June 13, SharpLink’s stock has rebounded to $18. Meanwhile, ethereum reached $2,967 on Thursday, marking its highest price since early February.
Zachary Rampone serves as a DeFi correspondent at DL News. For tips, reach out at [email protected].
