SharpLink Acquires 10,000 Ethereum from Ethereum Foundation, Shares Surge

SharpLink Gaming, a publicly traded Ethereum treasury firm, reported acquiring 10,000 Ethereum ($30 million) directly from the Ethereum Foundation. The major cryptocurrency climbed 17% in the preceding days to surpass $3,000, contributing to SharpLink’s 71% stock gain this week.

Transaction Details

The Ethereum Foundation confirmed the cashless, over-the-counter (OTC) sale via X, stating 10,000 ETH (approximately $30 million at the time) were transferred to SharpLink for ~$2,600 per coin. The non-profit R&D funder maintains minimal technical control over the Ethereum network.

Despite criticism regarding its fund management practices, the Ethereum Foundation acknowledged the transaction.

Market Perspectives

One observer described the sale as a “creative way” for the Foundation to finance its initiatives, possibly addressing market concerns about fund “dumping,” though OTC transactions avoid direct market impact.

SharpLink’s stock rose to ~$20 per share, a significant 50% increase over the past week according to Yahoo Finance. Joe Lubin, SharpLink Chairman and Ethereum co-founder, spearheads this treasury operation.

Context & Strategy

SharpLink, holding a substantial ~215,300 ETH ($644M) stake (second to the Foundation), seeks shareholder value growth by maximizing its crypto holdings per share. Similar Ethereum treasury firms leverage yield strategies including DeFi and staking, following leaders like Tom Lee, Consensys CEO, and Joe Lubin.

Its stock performance recently contrasted with its May athena high of $124/share, dropping 70% immediately after registration filing, before the subsequent surge.

While primarily focused on sports gambling marketing previously, SharpLink’s shift signals its evolution into a major institutional crypto participant alongside other key treasury firms.

“Guess that’s one way to fix [Ethereum Foundation] dumping.” -Alex Svanevik (@nansen), CEO of Nansen

Significance

The transaction highlights tensions between decentralized protocol funding models and traditional treasury management, while demonstrating the market sensitivity to large institutional actors using crypto. The OTC mechanism offers a discreet method for large-volume transfers outside conventional market mechanics.