SharpLink Gaming Acquires $463 Million in Ether Becoming 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 SharpLink as the world’s largest publicly traded holder of ETH. The company, listed on the Nasdaq, funded the acquisition through a combination of private placement and at-the-market equity sales, raising $79 million since May 30. The average acquisition price per coin was $2,626.

SharpLink has deployed over 95% of its ETH holdings 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 SharpLink’s primary treasury reserve asset.

SharpLink’s strategy mirrors that of MicroStrategy, which has been a prominent buyer of Bitcoin (BTC). However, SharpLink’s focus on Ethereum makes it 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 treasury model. Joseph Lubin, chairman of SharpLink and co-founder of Ethereum, highlighted that SharpLink’s allocation of significant capital to ETH and its deployment in network activities like staking contribute to Ethereum’s long-term security and trust properties while earning additional ETH.

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, such as BlackRock, hold significantly larger amounts 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 and not insider unloading.

SharpLink’s move reflects a broader trend of corporate crypto treasury adoption, echoing MicroStrategy’s high-profile Bitcoin strategy but with a focus on Ethereum as the center of digital capital reserves. This strategic shift underscores the growing acceptance and integration of digital assets within traditional financial structures, positioning SharpLink at the forefront of this evolving landscape.