Ethereum News Today: Sharplink Gaming Plans $5 Billion Stock Sale to Boost Ethereum Holdings

Sharplink Gaming Inc. has filed to sell up to $5 billion worth of additional common stock, primarily to fund the purchase of ether for its corporate treasury. The Minneapolis-based online gaming marketing company disclosed the plan in a Securities and Exchange Commission (SEC) filing this week. The new shares supplement an existing $1 billion stock sales program, raising the total potential offering under its agreement with sales agent A.G.P./Alliance Global Partners to $6 billion.

Sharplink has already sold shares worth approximately $720.8 million under the prior authorization. Sharplink further stated it intends to use “substantially all” cash proceeds from the new sales to acquire ethereum (ETH), the native cryptocurrency of the Ethereum blockchain. The company adopted ETH as its primary treasury reserve asset in May, citing goals of diversifying reserves, enhancing capital efficiency, and aligning with emerging financial technologies. As of July 13, the firm told the SEC it held 280,706 ETH, with 99.7% deployed for staking rewards.

The company, trading on Nasdaq under “SBET,” also amended its sales agreement to permit forward sales of its stock. Shares closed at $37.38 on July 16. Sharplink focuses on performance-based marketing for sportsbooks and casinos and is expanding into crypto gaming, including a stake in the domain Cryptocasino.com. The SEC filing said sales will occur “at the market” through Nasdaq or other U.S. venues. A.G.P. will earn commissions ranging from 2.0% to 4.0% depending on the sales volume and type. Sharplink reported a 26.1% year-over-year revenue decline from its core affiliate marketing services for 2024. In addition to ethereum, proceeds may also cover working capital, corporate expenses, and core operations, the company concluded.

SharpLink Gaming has announced a significant strategic move by filing to sell $5 billion worth of common stock. The proceeds from this stock offering are primarily intended to bolster the company's Ethereum holdings and support its ongoing expansion in the online gambling sector, as well as to fund technological upgrades. This initiative underscores SharpLink Gaming's commitment to leveraging Ethereum's potential for growth and innovation within its operations.

The company has already made substantial investments in Ethereum, increasing its holdings by $48.85 million. This move has positioned SharpLink Gaming as a major player in the Ethereum ecosystem, with a total of 280,706 ETH. By staking 99.7% of its holdings, the company is not only securing its position but also generating yield from its staked assets. This aggressive approach to Ethereum investment is part of a broader strategy to enhance the company's financial stability and operational capabilities.

SharpLink Gaming's decision to sell an additional $5 billion worth of common stock is a clear indication of its commitment to Ethereum. The funds raised will be used to acquire more ETH, further increasing the company's holdings. This move is expected to solidify SharpLink Gaming's position as a leading corporate holder of Ethereum, potentially surpassing even the Ethereum Foundation in terms of holdings. The company has already increased its Ethereum reserves by 10,614 ETH, bringing the total to 296,508 ETH. This substantial increase in holdings reflects the company's confidence in the long-term value and utility of Ethereum.

The amendment to the sales agreement and the subsequent stock sale are part of a broader prospectus supplement dated May 30, 2025. This supplement amends and supplements the information in the base prospectus, providing a comprehensive overview of the company's financial strategy and future plans. The prospectus supplement highlights the company's commitment to transparency and accountability, ensuring that investors are well-informed about the use of the funds raised through the stock sale.

SharpLink Gaming's strategic focus on Ethereum is not without precedent. The company is backed by Joe Lubin, a prominent figure in the Ethereum community and the co-founder of ConsenSys, a blockchain technology company. Lubin's involvement adds credibility to SharpLink Gaming's Ethereum strategy, as he has been a vocal advocate for the potential of Ethereum and blockchain technology. This backing further underscores the company's commitment to leveraging Ethereum for growth and innovation.