David Edwards
SharpLink Gaming Inc., a U.S.-based sports betting platform, has filed a shelf registration with the Securities and Exchange Commission (SEC) to offer up to $1 billion in common stock. As part of a recently introduced corporate treasury strategy, the main goal is to purchase Ether (ETH), the native coin of the Ethereum network.
According to SharpLink’s filing dated May 30, “We intend to use substantially all of the proceeds from this offering to acquire Ether.” Additionally, the business intends to set aside money for essential affiliate marketing activities, operating costs, general corporate reasons, and working capital.
This action comes after SharpLink announced on May 27 that it would launch its Ethereum treasury strategy with a $425 million private placement. Prominent crypto venture firms ConsenSys, ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital participated in the private investment in public equity (PIPE), which entailed the sale of roughly 69.1 million shares at a price of $6.15 per share.
Joseph Lubin, the CEO of ConsenSys and a co-founder of Ethereum, has been named Chairman of SharpLink’s Board of Directors as part of this strategic change. Lubin was excited about the collaboration, saying that ConsenSys is looking forward to working with SharpLink as a strategic advisor in its core business and investigating and creating an Ethereum Treasury Strategy.
These developments were well received by the market. SharpLink’s shares jumped more than 400% on May 27 and closed at $35.83, up from $6.72 the day before. The stock, which as of May 31 was trading at $76.70, was still exhibiting volatility.
Michael Saylor’s Bitcoin acquisition technique at MicroStrategy has been compared to SharpLink’s aggressive Ether collection. “Ethereum finally has its own Saylor,” said cryptocurrency analyst 0xBoboShanti, emphasizing the company’s audacious entry into bitcoin treasury management.
