SharpLink Gaming Targets $1B Stock Sale to Build Ethereum Treasury Amid Market Volatility
U.S.-based SharpLink Gaming has announced a bold plan to raise up to $1 billion through a public stock offering, with the intention of using nearly all proceeds to purchase Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
According to a recent SEC filing, the company aims to issue up to 72.05 million shares of common stock under the ticker symbol “SBET.” A portion of the shares—roughly 12.6 million—was priced at $79.21 each based on Nasdaq’s May 29 listing. The final amount raised will depend on how many shares are sold and at what price.
In the filing, SharpLink confirmed it is “intending to use substantially all of the proceeds from this offering to acquire Ether,” doubling down on its strategy to build a significant Ethereum treasury. If the full $1 billion target is met, the company could acquire approximately 400,000 ETH at current market prices.
This move mirrors a similar playbook used by MicroStrategy founder Michael Saylor, who famously built a corporate Bitcoin treasury, turning his firm into one of the largest BTC holders in the world.
However, investor reaction to SharpLink’s latest announcement has been mixed. Shortly after the news broke, the company’s stock fell sharply in pre-market trading on June 2, sliding 24% from $76.70 to $58.15. This stands in stark contrast to the market’s enthusiastic response just days earlier when SharpLink revealed a plan to raise $425 million in a private placement to kickstart its ETH holdings. That announcement triggered a dramatic surge in the stock price, jumping 420% in pre-market trading from $6.72 to $34.75.
On May 27, SharpLink took a significant step in that direction by appointing Ethereum co-founder Joseph Lubin as Chairman of its Board following the close of its $425 million funding round. The company also formally adopted Ethereum as its primary treasury reserve asset.
While interest in corporate Ethereum holdings is gaining traction, it still lags behind the institutional appetite for Bitcoin. Nevertheless, other firms are beginning to follow suit. For example, French real estate platform Entreparticuliers recently announced plans to accumulate ETH. The market responded swiftly, with its stock surging over 800% within five days of the announcement.
As of now, Ethereum is trading at $2,484 with a market cap just shy of $300 billion. Despite a slight dip of 0.4% in the past 24 hours, Ethereum continues to attract attention from companies looking to integrate blockchain-based assets into their balance sheets.