SharpLink Gaming Increases Equity Offering Significantly Amid Major ETH Purchases

Joseph Lubin-backed SharpLink Gaming (SBET) announced a substantial increase in its planned equity sale, raising the amount it can offer to investors from $1 billion to $5 billion. This filing, submitted to the U.S. Securities and Exchange Commission (SEC), reveals the company aims to bolster its treasury, primarily by adding more Ethereum (ETH).

Pursuant to the filing, SharpLink declared its intention to substantially apply the proceeds from the new offering towards acquiring Ether, alongside funding working capital, general corporate purposes, operating expenses, and affiliate marketing operations. A Lookonchain analysis confirms the company has allocated a significant sum – $515 million worth of ETH – over the past nine days.

ETH Acquisition Continues

Building on recent substantial purchases, SharpLink remains a significant player in the crypto market. Just days prior to the filing, the company stated its intent to hold 1 million ETH. Recent transactions and stake holdings are detailed below.

• Largest Corporate Holder: SharpLink surpassed the Ethereum Foundation, becoming the largest corporate holder of ETH.
• Purchase Announcement: Following the equity filing, SharpLink acquired an additional 32,892 ETH (worth $115 million).
• Staking Details: As of Tuesday, the company held over 280,000 ETH (~$982.8 million), with nearly 99.7% staked. During June 2-July 15, they generated 415 ETH in staking rewards.
• Total ETH Holdings: The $515 million purchase over nine days, verified by Lookonchain, underscores the company’s aggressive accumulation strategy.

Analyst Galaxy Research commented on the positive catalyst this development represents for the Ethereum ecosystem.

Stock Performance Increases Amid Activity But Trading Follows Sharply Lower Open

The substantial equity offering revision and its focus on acquiring ETH led to a significant drop in SBET stock following the market close on Thursday.

• Thursday Session: SBET closed at $36.40, down 2.62%.
• After-Hours Dip: Trading continued lower, with after-hours activity registering a 4.95% decline to $34.60.
• Recent Performance Context: Despite Thursday’s decline, the stock is up a robust 350% year-to-date. However, it has retreated 54% from its May 29 peak of $79.21.

SharpLink reported a 24% year-on-year revenue decline during Q1 (March quarter), with its net profit margin negatively impacted. The company’s upcoming quarterly results are scheduled for release on August 13.