SharpLink Gaming Buys $612 Million in Ethereum, Stock Surges 2,700%

SharpLink Gaming, a publicly listed sports and online casino marketing firm, is rapidly positioning itself to become the largest corporate holder of Ethereum (ETH). The company has been purchasing tens of millions of dollars worth of ETH every day, according to Ethereum co-founder Joe Lubin, who also chairs SharpLink’s board and leads Consensys, a major Ethereum software developer.

As of Thursday, SharpLink’s Ethereum reserves stood at $612 million. The aggressive accumulation marks a new chapter for SharpLink. CEO Rob Phythian revealed in May that the company would expand beyond its traditional business, selling approximately $425 million in stock to investors including Consensys. The proceeds are earmarked for Ethereum purchases, establishing ETH as SharpLink’s primary treasury reserve asset. This approach echoes that of Strategy, a software firm that has amassed $67 billion in Bitcoin since 2020.

Following SharpLink’s announcement, its stock price surged nearly 2,700%, peaking at $124 on May 30. However, the price later plunged by 75% after an SEC filing allowed insiders to sell shares. Lubin clarified on social media that neither he nor Consensys has sold any shares and described the filing as standard. Between June 28 and July 4, SharpLink raised $64 million, committing $37 million of it to further Ethereum purchases. The company has also staked its entire ETH holdings, earning 322 ETH in staking and restaking rewards since early June.

SharpLink currently ranks second among corporate holders, behind the Ethereum Foundation and ahead of Coinbase and others. After dipping below $10 in mid-June, SharpLink’s stock has rebounded to $18. Meanwhile, Ethereum’s price reached $2,967 on Thursday, its highest level since early February. At the current rate, SharpLink is on track to overtake the Ethereum Foundation, which currently holds around $725 million worth of the cryptocurrency.

More public companies are diversifying into crypto holdings that include BTC, ETH, SOL, and XRP. Just recently, BIT Mining announced plans to raise between $200 million and $300 million to build a Solana (SOL) treasury as part of a broader expansion into the fast-growing blockchain ecosystem. Last week, DeFi Development Corp. revealed that it has acquired $2.7 million worth of Solana as part of its aggressive crypto treasury strategy. Likewise, Canadian digital asset firm Sol Strategies, already trading on the Canadian Securities Exchange, holds over 420,000 SOL tokens, positioning itself as a significant institutional player in Solana’s ecosystem. Last month, the firm also filed to list its common shares on the Nasdaq Capital Market under the ticker “STKE” as it ramps up its U.S. expansion.

SharpLink’s strategy to double down on Ethereum as its primary treasury reserve asset is a bold move that reflects the growing trend of companies diversifying their holdings into cryptocurrencies. This strategy not only positions SharpLink as a major player in the Ethereum ecosystem but also aligns with the broader trend of institutional adoption of digital assets. The company's aggressive accumulation of ETH and its commitment to staking rewards demonstrate a long-term vision for integrating cryptocurrencies into its financial strategy. As more companies follow suit, the landscape of corporate treasury management is likely to see significant shifts towards digital assets.