Ethereum News Today: SharpLink Gaming Shares Drop 6.5% After $400 Million Ether Buy Deal

SharpLink Gaming has triggered significant market attention following a $400 million share purchase agreement aimed at acquiring additional Ether (ETH) [1]. The deal, announced on August 12, 2025, is part of the company’s strategy to increase its Ether holdings, which are now expected to exceed $3 billion in value [2]. As of the latest report, SharpLink holds approximately 598,800 ETH, valued at $2.57 billion [3]. The move underscores the firm’s transformation from a sports betting marketing company to a major player in the Ethereum ecosystem [4].

Despite the long-term strategic benefits of the acquisition, the announcement led to immediate volatility in SharpLink’s stock. Shares closed down over 6.5% at $22.34 on the day of the announcement [5]. However, the stock partially recovered in after-hours trading, gaining nearly 3.5% to $23.10 [6]. The decline reversed some of the firm’s recent gains, which had seen its shares rise by 17.5% over the past five trading days and 189% year-to-date [7].

The $400 million deal is the latest in a series of major capital raises by SharpLink. Over the past week alone, the firm has secured nearly $900 million, including a $200 million agreement with four institutional investors and $264.5 million in net proceeds from an at-the-market offering [8]. SharpLink’s co-CEO Joseph Chalom stated that these investments reflect strong market confidence in the firm’s Ethereum treasury strategy and the growing recognition of Ethereum’s potential [9].

Ether has also seen a recent rebound, trading near $4,278 on August 12, up 44.5% over the past month [10]. While still about 12% below its all-time high of $4,878, the cryptocurrency has gained momentum as institutional interest in Ethereum continues to rise. SharpLink’s increasing ETH holdings place it among the largest public companies in terms of Ethereum ownership, though it remains second to BitMine Immersion Technologies, which holds 1.15 million ETH valued at nearly $5 billion [11].

The firm’s aggressive capital-raising and Ethereum accumulation strategy have sparked both support and skepticism in the market. While SharpLink’s co-CEO emphasized the long-term benefits of building a strong Ethereum treasury, the company also faces scrutiny over the sustainability of its share issuance and the potential for short-term price volatility. Despite these concerns, SharpLink has continued to attract significant institutional backing, with five global institutional investors participating in the latest $400 million deal [12].

SharpLink Gaming’s actions highlight a broader trend of corporate investment in cryptocurrencies, with firms increasingly treating digital assets as core components of their financial strategies. As the crypto market continues to evolve, the success of companies like SharpLink will depend on both market conditions and their ability to maintain investor confidence in their long-term visions.

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[1] SharpLink Gaming’s recent $400 million share purchase deal aims to significantly boost its Ether holdings, which are expected to exceed $3 billion in value.

[2] SharpLink Gaming’s total Ether holdings now stand at approximately 598,800 ETH, valued at around $2.57 billion.

[3] SharpLink Gaming, a sports betting marketing firm turned Ether treasury company, closed the trading day at a loss on Monday after announcing a $400 million deal to help it buy more crypto.

[4] SharpLink is still up 17.5% in the last five trading days and 189% so far this year after it started buying Ether in May.

[5] SharpLink Gaming shares closed trading on Monday down over 6.6% at $22.34 after announcing its latest deal.

[6] However, shares in SharpLink Gaming (SBET) closed trading on Monday down over 6.6% at $22.34 after announcing its latest deal. The stock slightly recovered after the bell, gaining nearly 3.5% to $23.10.

[7] SharpLink is still up 17.5% in the last five trading days and 189% so far this year after it started buying Ether in May.

[8] SharpLink has raised nearly $900 million over the past week, which SharpLink co-CEO Joseph Chalom said “underscores the market’s confidence in SharpLink’s ETH treasury strategy.”

[9] “The speed and scale of these investments reflect not only investor trust in SharpLink, but also the growing recognition of Ethereum’s transformative potential,” he added.

[10] ETH has traded flat over the past day, but has gained 44.5% in the past 30 days — climbing from below $3,000 to highs of above $4,300 on Monday, per CoinGecko.

[11] As of Sunday, SharpLink has scooped up a total of 598,800 ETH, currently worth $2.57 billion as Ether trades around $4,300. Its ETH holdings trail only Bitcoin (BTC) mining service provider BitMine Immersion Technologies, which holds over 1.15 million ETH worth nearly $5 billion.

[12] SharpLink Gaming said on Monday it entered into a share purchase agreement with “five global institutional investors” that would help boost its Ether (ETH) holdings, which it added is “expected to exceed $3 billion in value.”

Source: [1][2][3][4][5][6][7][8][9][10][11][12]

[1]title1: SharpLink Gaming Faces Share Decline Amid $400 Million Ether Acquisition Deal

[url1]https://en.coinotag.com/sharplink-gaming-faces-share-decline-amid-400-million-ether-acquisition-deal/