SharpLink Gaming Acquires $463 Million in Ether, Becomes World’s Largest Public Holder

SharpLink Gaming, a sports betting platform, has made a significant move in the cryptocurrency market by acquiring 176,271 Ether (ETH) for $463 million. This purchase has positioned the company as the world’s largest publicly traded holder of ETH. The acquisition was funded through a combination of private placement and at-the-market equity sales, with $79 million raised since May 30. The average acquisition price per coin was $2,626.

SharpLink has deployed over 95% of its ETH in staking and liquid staking platforms. This strategy not only earns yield for the company but also contributes to the security of the Ethereum network. Rob Phythian, CEO of SharpLink Gaming, described this move as a landmark moment for the company and for public company adoption of digital assets. He stated that ETH is now treated as the company’s primary treasury reserve asset.

SharpLink’s strategy mirrors that of MicroStrategy, which has been known for its Bitcoin (BTC) buying strategy. However, SharpLink is the first public company to adopt ETH as its core treasury reserve asset. The company aims to offer shareholders meaningful economic exposure to ETH through this ETH-based treasury model. Joseph Lubin, chairman of SharpLink and co-founder of Ethereum, highlighted that SharpLink’s bold ETH strategy represents a pivotal milestone and innovative approach to the institutional adoption of Ethereum. By allocating significant capital to ETH and deploying it in network activities such as staking, SharpLink is contributing to Ethereum’s long-term security and trust properties while earning additional ETH for that work.

While SharpLink is the largest publicly traded holder of ETH, some entities hold more ETH. The Ethereum Foundation, for instance, holds 214,129 ETH in its treasury. Additionally, some crypto exchange-traded funds (ETFs) providers like BlackRock hold a significantly larger amount of Ether on behalf of their clients. The iShares Ethereum Trust ETF held roughly 1.7 million ETH as of June 12.

SharpLink’s ETH strategy has not been without controversy. The company’s share price surged more than 400% after its May 27 ETH treasury announcement. However, following the announcement of an S-3 SEC filing, shares plunged by about 73% in after-hours trading. This sharp sell-off was due to a misunderstanding: the filing allowed for the potential resale of nearly 58.7 million shares from PIPE participants, not an immediate sale. Lubin clarified that this was a routine regulatory procedure, not insider unloading.

SharpLink’s purchase of ETH follows a broader trend of corporate crypto treasury adoption. This move places Ethereum at the center of digital capital reserves, echoing MicroStrategy’s high-profile Bitcoin strategy but with a focus on Ethereum. The company’s decision to stake a significant portion of its ETH holdings not only provides a yield but also supports the Ethereum network’s security and trust properties. This strategic move positions SharpLink as a leader in the institutional adoption of Ethereum, setting a precedent for other public companies considering similar strategies.