SharpLink Gaming Buys $463M Ether, Stock Drops 70%

SharpLink Gaming, a publicly traded company, has made a significant move in the cryptocurrency market by acquiring 176,271 ether, valued at nearly $463 million. This purchase positions SharpLink as the largest holder of ether among publicly traded companies. The company utilized its $1 billion at-the-market (ATM) common stock share facility to raise $79 million, primarily to fund this substantial ether acquisition.

The announcement of the ether purchase came shortly after a regulatory filing on Thursday, which allowed investors from the firm's private placement round to sell their shares. This filing resulted in a 70% drop in SharpLink's stock price after market hours. Despite this significant decline, the stock remains 66% lower on Friday, but it is still ahead by more than 500% since the company announced its ether treasury strategy several weeks ago.

SharpLink Gaming is part of a growing trend among public companies that are adding cryptocurrencies to their balance sheets. Earlier this month, the company raised $450 million through a private round from a diverse group of investors, including ConsenSys, Galaxy, and Pantera Capital. Ethereum co-founder and ConsenSys CEO Joseph Lubin joined the firm as board chairman following this investment.

Shares of SharpLink Gaming surged by 4,300% in just over a week after the company announced its crypto strategy in May. However, the stock has since given back more than 90% of that rally this month. Despite the recent volatility, shares are still trading around 500% higher than before the company's pivot to a crypto treasury strategy.