The American online gambling technology company SharpLink Gaming (NASDAQ: SBET) announced a major strategic adjustment, planning to incorporate $425 million worth of Ethereum (ETH) into its corporate financial system. Upon the announcement, SharpLink's stock price skyrocketed by 433.18%, closing at $35.83, becoming the latest focal point at the intersection of crypto finance and iGaming industry.
This plan, known as the "Ethereum Financial Reserve Strategy," marks a critical step for SharpLink in asset allocation beyond its core business. The company's founder and CEO, Rob Phythian, stated, "This is a significant milestone in the development history of SharpLink, symbolizing an upgrade in our business model and capital strategy."
To raise funds, the company issued over 69.1 million common shares through a private placement PIPE (Private Investment in Public Equity) agreement, priced at $6.15 per share (with the management team purchasing at $6.72 per share). The proceeds will be used to purchase Ethereum, serving as corporate reserve assets.
SharpLink's decision has received a positive response from giants in the crypto field. ConsenSys, founded by Ethereum co-founder Joseph Lubin and the company behind MetaMask, served as the lead investor in this funding round, attracting heavyweight investment institutions such as ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, and Galaxy Digital.
Moreover, Joseph Lubin will join the SharpLink board and serve as chairman after the transaction is completed (expected on May 29). This personnel change is interpreted by the outside world as a signal of SharpLink's deep integration into crypto finance.
In the market, the price of Ethereum also rose by 4% within 24 hours, reaching $2639, boosted by the news. Several analysts believe that SharpLink's move could pave a new path for ETH as "corporate reserve assets," similar to the precedent set by Michael Saylor's MicroStrategy incorporating Bitcoin into its company's balance sheet.
This strategic transformation not only demonstrates SharpLink's confidence in blockchain assets but may also provide a template for more publicly traded companies looking to step beyond Bitcoin and seek diverse crypto allocations.
