Sharplink Gaming Stock Plummets 67% After Resale Filing GameStop Revenue Drops 17% Despite Profitability Improvements

Sharplink Gaming, a sports betting platform, experienced a significant drop in its share price following the filing of a registration for nearly 58.7 million shares for potential resale. The stock plummeted by 67% in after-hours trading on Thursday, causing investor concern. The decline followed a 12.25% drop during regular trading hours, with the stock closing at $32.53 before briefly falling below $8 and later stabilizing at $10.55.

The market's reaction was driven by confusion over the nature of the filing. Joseph Lubin, chairman of Sharplink Gaming and CEO of a blockchain software company, clarified that the Form S-3 filing with the US Securities and Exchange Commission was a standard procedural step following a private investment in public equity deal. He emphasized that the filing does not signal any actual sales of shares and is merely a formalization of details already made public two weeks earlier. Matt Corva, general counsel at the blockchain software company, echoed this sentiment, stating that the filing confirms the previously announced sale of shares to investors and validates the company’s Ethereum-focused treasury strategy.

Sharplink had previously announced plans to raise up to $1 billion through a stock sale to fund a major Ethereum acquisition as part of its new blockchain-based treasury strategy. Despite the clarification, the abrupt drop in share price highlighted investors' caution regarding large resale filings. Charles Allen, CEO of a blockchain technology company, discussed the psychological impact such filings can have on shareholders, referencing the rush among investors to sell before others do. He speculated that the situation could turn around quickly if Sharplink follows through on its promise and announces the anticipated $1 billion Ether purchase soon, potentially reigniting investor confidence and the stock’s momentum.

GameStop Corp also saw a decline in its share price after releasing its first-quarter earnings, which showed a mixed picture of operational recovery despite declining revenue. The video game retailer reported $732.4 million in revenue for the quarter ending May 3, falling short of analyst expectations of $754.2 million and marking a 17% year-over-year decline. The company attributed the revenue drop to persistent headwinds in physical game sales. Despite the weaker top-line figure, GameStop recorded improvements in profitability, with net income reaching $44.8 million, a turnaround from a net loss of $32.3 million during the same period last year. Operating losses also narrowed to $10.8 million, compared to $50.6 million in Q1 of 2024. However, the market reacted negatively to the revenue miss, with GME shares dropping more than 3.5% in after-hours trading to just above $29.

GameStop's stock performance has been relatively stagnant over the past month and is down approximately 3.8% year-to-date. This modest decline comes shortly after GameStop entered the world of digital assets by confirming in late May that it purchased 4,710 Bitcoin, valued at around $513 million at the time. The firm said the Bitcoin acquisition was funded through a $1.3 billion convertible note offering. GameStop has not revealed how much more Bitcoin it plans to purchase but indicated that it has some flexibility in its strategy, meaning it may sell its holdings if necessary. The company reported a robust $6.4 billion in cash, cash equivalents, and marketable securities, giving it more than enough firepower to expand its Bitcoin reserve in the future.

Despite the recent gaming stock drops, there is still interest in gaming companies. One of the largest tech conglomerates is reportedly in discussions to acquire a South Korean game developer and publisher, the company behind the popular MapleStory franchise. Representatives from the tech conglomerate reached out to the family of the game developer and publisher's founder to explore a possible deal. However, the discussions are still in the early stages, and no formal agreement has been made. The game developer and publisher has long been a dominant force in the online gaming industry, and MapleStory gained massive popularity in the early 2000s. More recently, the game developer and publisher has been active in the Web3 gaming space by launching blockchain-integrated versions of its flagship series. In May of 2025, the company rolled out MapleStory N and MapleStory Universe, both of which allow players to earn and trade in-game items as non-fungible tokens. Web3 gaming, while still a niche segment in the gaming industry, experienced a dramatic uptick in activity. A February 2025 report indicated that blockchain gaming saw a 368% year-over-year surge in January, driven in part by the popularity of games and anticipation around MapleStory N. These new titles aim to merge high-end graphics and gameplay with blockchain-based economies. This is a departure from earlier Web3 games that focused more on rewards and often lacked gameplay depth. Despite this excitement, the sector still has to reach mainstream adoption. The report indicated a 10% drop in daily unique active wallets by early 2025, which suggests that the initial surge of interest may be tapering off. There are also still some challenges to overcome, including the complexity of setting up crypto wallets and widespread skepticism among traditional gamers, many of whom see monetization mechanics like NFTs as intrusive. While the tech conglomerate’s potential acquisition of the game developer and publisher could energize the Web3 gaming landscape, it also sheds some light on the sector’s ongoing struggle to balance innovation with accessibility and player trust.