SharpLink Gaming Buys $463 Million in Ethereum, Becomes World’s Largest Public Holder

SharpLink Gaming, a Nasdaq-listed sports betting firm, has made a significant move in the cryptocurrency market by acquiring 176,271 Ethereum (ETH) for $463 million. This purchase positions SharpLink as the world’s largest publicly traded holder of Ethereum. The company funded the acquisition through a combination of private placement and at-the-market equity sales, raising $79 million since May 30 with an average purchase price of $2,626 per coin.

Over 95% of SharpLink’s ETH holdings are now deployed in staking and liquid staking platforms. This strategy not only generates yield but also supports Ethereum’s network security. CEO Rob Phythian described the move as a “landmark moment” for the company and the broader trend of digital asset adoption in public markets. He stated, “We now treat ETH as our primary treasury reserve asset.” This approach echoes Strategy’s adoption of a Bitcoin-focused treasury model.

Ethereum co-founder and SharpLink chairman Joseph Lubin highlighted the strategic evolution in institutional Ethereum adoption. He noted that by allocating capital to ETH and participating in network activity, SharpLink contributes to Ethereum’s long-term trust and earns additional ETH in return. Despite its leading position among public firms, SharpLink’s holdings are still smaller than those of the Ethereum Foundation, which holds over 214,000 ETH, and BlackRock’s iShares Ethereum Trust, which manages approximately 1.7 million ETH on behalf of clients.

The move has not been without turbulence. SharpLink’s stock surged over 400% after its May 27 announcement but fell sharply this week following confusion over an SEC S-3 filing. The stock plunged by roughly 73% in after-hours trading on Thursday before recovering partially. The drop was due to a mistaken belief that insiders were dumping shares, when in fact the filing merely enabled the potential resale of shares by PIPE participants. Lubin clarified that it was a routine regulatory step, not an insider selloff.