SharpLink Gaming Invests $112.55 Million in Ethereum, Stocks Surge 71%

SharpLink Gaming, a Nasdaq-listed company, made a substantial investment in the cryptocurrency market by purchasing $48.85 million worth of Ethereum on Sunday. This acquisition came on the heels of a previous purchase of $63.7 million in Ethereum on Friday, both transactions facilitated through Galaxy Digital’s over-the-counter trading desk. The Ethereum was transferred to SharpLink’s wallet, although the company has not publicly confirmed the transaction. These recent purchases have positioned SharpLink as one of the largest holders of Ethereum, second only to the Ethereum Foundation, with a total holding of 216,000 ETH valued at approximately $648 million.

SharpLink's strategic shift towards Ethereum began in late May when it pivoted to an aggressive Ethereum treasury strategy following a $425 million private placement led by Consensys. This deal brought Ethereum co-founder and Consensys CEO Joseph Lubin on board as the chairman of SharpLink. Under Lubin’s leadership, SharpLink has reimagined itself as both a treasury investor in Ethereum and a steward of its ecosystem. The company’s Ethereum reserves are now second only to the Ethereum Foundation itself, according to Strategic Ethereum Reserve.

Lubin emphasized that SharpLink's Ethereum acquisitions are not merely speculative trades but a long-term commitment to the Ethereum ecosystem. "This isn’t a trade—it is a commitment to our long-term vision. SharpLink is acquiring, staking, and restaking Ethereum as responsible industry stewards, removing supply from circulation and reinforcing the health of the Ethereum ecosystem," Lubin stated. He further elaborated that this strategy is part of a broader vision to advance the ecosystem’s shared goals of decentralization, economic empowerment, and protocol-native finance.

The recent Ethereum purchases have had a positive impact on SharpLink's stock performance. The company's shares closed at $21.65 on Friday, marking a 17.5% increase for the day and a 71% rise over the past week. This upward trend continued into Sunday, with shares moving higher again, up 7.16% at $23.20. Ethereum itself has also seen a 3% increase over the past 24 hours, trading at $3,052.

SharpLink's aggressive Ethereum treasury strategy is part of a broader trend among companies that were previously not linked to crypto, reimagining themselves as reserves. This shift reflects a growing interest in Ethereum as a strategic asset, although it remains less popular compared to Bitcoin as a reserve choice. The company's actions have drawn scrutiny, with some industry figures commenting on the potential impact of large OTC sales on the Ethereum market. Despite this, SharpLink's commitment to Ethereum underscores its belief in the long-term potential of the asset and its ecosystem.