SharpLink (SBET) focuses on Ethereum, using every dollar raised to buy more ETH and generate yield.

SharpLink (SBET) focuses on Ethereum, using every dollar raised to buy more ETH and generate yield.

SharpLink Gaming (SBET), a Nasdaq-listed company, has undergone a significant transformation, pivoting from a traditional sports betting marketing firm to one of the world's largest corporate Ethereum holders. With 521,939 ETH in its treasury, valued at over $2 billion, SBET is the second-largest institutional ETH holder after Bitmine [1]. This strategic shift was led by Ethereum co-founder Joseph Lubin, who serves as Chairman and strategic advisor.

The decision to abandon their traditional business model was influenced by several factors. SharpLink faced financial pressures, including a 24% revenue decline and a 110% decrease in net profit margins by March 2025. Additionally, the growing demand for crypto among traditional investors created a market opportunity for SBET's new approach. Ethereum's potential as an inflation hedge and its strategic positioning in the Web3 gaming and betting industry further solidified this pivot [1].

SBET's Ethereum treasury strategy involves using every dollar raised to buy more ETH and generate yield. The company holds 521,939 ETH, worth over $2 billion, and has earned 929 ETH through staking rewards since launching its treasury strategy in June 2025. This approach allows SBET to generate passive income and grow its ETH holdings over time. The company maintains a 100% staking rate on all ETH holdings, maximizing yield generation [1].

SBET employs multiple sophisticated funding mechanisms to build its ETH treasury. The company received SEC approval to sell up to $6 billion in new shares through At-The-Market (ATM) sales. This provides enormous capacity for future acquisitions. Additionally, SBET has executed strategic OTC purchases, including buying 10,000 ETH directly from the Ethereum Foundation [1].

The appointment of Joseph Lubin as Chairman of SBET's Board of Directors represents a significant strategic advantage. Lubin's background as an Ethereum co-founder and ConsenSys CEO brings deep technical and market expertise to the company. His involvement provides unique insights into Ethereum's development and institutional adoption trends, setting SBET apart from other corporate crypto strategies [1].

SharpLink's Ethereum treasury strategy offers several benefits to investors. SBET provides leveraged exposure to Ethereum without the complexities of direct crypto ownership. The stock trades on traditional platforms, making Ethereum investment accessible to retirement accounts, institutional investors, and individuals uncomfortable with direct crypto ownership. Additionally, SBET's professional staking management generates yield through comprehensive staking strategies, automatically compounding rewards back into the treasury [1].

In conclusion, SharpLink Gaming's focus on Ethereum, using every dollar raised to buy more ETH and generate yield, represents a strategic pivot that leverages the company's unique position in the Web3 gaming and betting industry. With Joseph Lubin at the helm, SBET is well-positioned to capitalize on the growing demand for crypto exposure and the potential of Ethereum as an inflation hedge.

References:
[1] https://www.coingecko.com/learn/what-is-sharplink-gaming-sbet-ethereum-treasury