2025-05-28
SharpLink Gaming Inc. (NASDAQ: SBET)
has announced a strategic shift by initiating a $425 million private investment
in public equity (PIPE) to establish an Ethereum (ETH) treasury strategy.
SharpLink positions ETH as the
company's primary treasury reserve asset.
The investment round is led by
ConsenSys Software Inc., founded by Ethereum co-founder Joseph Lubin, who will
also assume the role of Chairman of SharpLink's Board of Directors upon the
deal's expected closure around May 29, 2025.
The PIPE involves the sale of
approximately 69.1 million shares at $6.15 each ($6.72 for management), with
participation from prominent crypto venture capital firms, including ParaFi
Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital,
and others.
SharpLink plans to use the proceeds
primarily to acquire ETH, marking a significant expansion beyond its core
business in the U.S. sports betting and global iGaming industries.
As part of the shakeup, Joseph Lubin,
co-founder of Ethereum and CEO of Consensys, has been named chairman of
SharpLink’s board of directors.
The Nasdaq-listed company announced the
move on Tuesday, revealing that the funding came through a securities purchase
agreement for a Private Investment in Public Equity (PIPE) transaction.
Consensys, Lubin’s blockchain software
firm, is among the key investors, signaling strong industry support.
“On close, Consensys looks forward to
partnering with SharpLink to explore and develop an Ethereum Treasury
Strategy,” said Lubin. “We’re also excited to advise them on their core
business.”
Heavyweight Backers
The funding round attracted some of the
most influential names in the crypto investment space. Participants include:
SharpLink’s own CEO Rob Phythian and
CFO Robert DeLucia also contributed personally to the round.
The deal is expected to close around
May 29, pending standard regulatory approvals. Once complete, SharpLink will
begin deploying Ether (ETH) as its primary treasury reserve asset, while also
using part of the funds for general corporate purposes.
Ethereum vs. Bitcoin in Corporate
Treasuries
While Bitcoin remains the go-to asset
for corporate crypto treasuries,
SharpLink’s decided to pivot to Ethereum.
This move follows recent ETH purchases
by BTCS, a public blockchain company, and echoes earlier treasury experiments
by companies like KPMG Canada and Reddit—though some, like Meitu and Boyaa
Interactive, have since retreated from Ether.
With this aggressive Ethereum play and
Lubin at the helm, SharpLink Gaming is positioning itself not just as a betting
tech firm, but as a potential trailblazer in the Web3 financial infrastructure
space.
SharpLink Gaming, Inc. is publicly
traded on NASDAQ under the ticker symbol SBET.
Following the announcement, SharpLink's
stock experienced a substantial surge, closing at $35.83 after the market closed on May 28, up from under $7 the
previous day, reflecting a 433.18% increase.
