Sharplink Gaming (SBET) Secures $840M in Ethereum: A Game-Changer!
SharpLink Gaming Becomes Largest Corporate Holder of ethereum
SharpLink Gaming’s Major ethereum Acquisition
SharpLink Gaming (SBET), a company listed on Nasdaq, has announced that it now holds the largest corporate stash of ethereum (ETH), totaling 280,706 ETH valued at approximately $840 million based on current market rates. This significant milestone was revealed in a press release on Tuesday.
Fundraising and Recent Purchases
The firm successfully raised $413 million by issuing over 24 million shares between July 7 and July 11. In a strategic move, SharpLink acquired 74,656 ETH within the past week, purchasing each token at an average price of $2,852.
Future Plans for ethereum Investments
According to the company, around $257 million of the funds raised is earmarked for future ethereum acquisitions, indicating a robust commitment to expanding its crypto treasury.
Market Response and Stock Performance
Despite a slight decline in ethereum‘s price to $2,990, SBET shares saw a 5% increase in U.S. trading on Tuesday. Since the company shifted its focus to a crypto treasury strategy, its stock has experienced a remarkable six-fold increase.
Surpassing the ethereum Foundation
With this latest acquisition, SharpLink has overtaken the ethereum Foundation, the organization responsible for the blockchain’s development, to become the leading corporate holder of ETH. Notably, the foundation recently sold 10,000 ETH to SharpLink in an over-the-counter transaction. Current blockchain data from Arkham Intelligence indicates that the ethereum Foundation holds approximately $665 million in ETH.
Embracing a Crypto Treasury Strategy
SharpLink Gaming is among several public companies that have adopted a crypto treasury strategy, following the example set by Michael Saylor’s Bitcoin-focused approach. Joseph Lubin, co-founder of ethereum and CEO of Consensys, has joined SharpLink as chairman, further solidifying its commitment to the crypto space.
Staking and Earnings from ethereum
The company is utilizing capital markets to fund its ETH acquisitions while also operating validators and staking its tokens to generate rewards. Since pivoting to this treasury strategy in June, SharpLink has earned 415 ETH, which translates to roughly $1.2 million at current prices.
Other Companies Joining the Trend
Other publicly traded firms in the U.S., such as Bitmine Immersion Technology (BMNR) and bitcoin miner BIT Digital (BTBT), have also shifted their focus to ethereum treasury strategies, reflecting a growing trend in the corporate world.
Conclusion
SharpLink Gaming’s recent moves highlight a significant shift in corporate investment strategies towards cryptocurrencies, particularly ethereum. As the company continues to expand its holdings, it sets a precedent for others in the industry to follow.
