SharpLink Gaming Buys 10,000 ETH for $25 Million as Ether Surges 16%

SharpLink Gaming has acquired 10,000 Ether (ETH) from the Ethereum Foundation through an over-the-counter transaction. The deal, finalized on Thursday, saw SharpLink Gaming pay an average price of $2,572.37 per Ether, totaling over $25 million. This purchase comes as Ether's price briefly surpassed $3,000, marking a significant milestone for the cryptocurrency.

The transaction was announced by both the Ethereum Foundation and SharpLink Gaming on Friday. The Ethereum Foundation confirmed the sale of 10,000 ETH, while SharpLink Gaming detailed the financial aspects of the deal. At the time of the announcement, Ether was trading nearly 16% higher than the agreed price, hovering just below the $3,000 mark.

This acquisition is part of SharpLink Gaming's broader Ethereum-based corporate treasury strategy, announced in late May. The company, which operates a betting platform, nominated Ethereum co-founder Joseph Lubin as chairman of its board of directors. Additionally, SharpLink Gaming entered into a securities purchase agreement for a private investment in public equity worth $425 million, with participation from Ethereum infrastructure firm Consensys.

Lubin emphasized the importance of ETH treasuries for the development of the Ethereum ecosystem. He noted that while a large amount of Ether is in circulation, there is insufficient activity to utilize it effectively. Lubin's involvement with SharpLink Gaming is aimed at enabling the supply-demand dynamics of Ether to support the growth of various applications within the Ethereum network.

The Ethereum Foundation's sale of 10,000 ETH coincides with a broader rally in the cryptocurrency market. Bitcoin reached new highs above $112,000, and Ether followed suit, briefly trading above $3,000 on Friday. This rally was fueled by significant inflows into crypto exchange-traded funds (ETFs), with Ether spot ETFs witnessing a total net inflow of $383.1 million on Thursday alone.

The price surge also follows announcements from the Ethereum Foundation regarding the transition to zero-knowledge proofs (ZK-proofs). Sophia Gold, a developer in the Ethereum Foundation’s protocol support team, described how traditional block execution is expected to be replaced with ZK-proofs within a year. This transition is part of a broader effort to enhance the network's efficiency and security.