SharpLink Gaming’s shares soared over 420% on May 27 following the company’s announcement of an ambitious $425 million private placement aimed at incorporating Ethereum (ETH) as its primary treasury reserve asset.
The strategic investment, structured as a private investment in public equity (PIPE), involved issuing approximately 69.1 million shares priced at $6.15 per share—management’s own stake was separately valued at $6.72 each.
Notably, Ethereum co-founder Joseph Lubin’s venture, Consensys Software Inc., took the lead investor position in SharpLink’s financing round. Additional prominent crypto investors such as ParaFi Capital, Pantera, Electric Capital, Galaxy Digital, and Arrington Capital also participated in the funding.
Under this new treasury approach, SharpLink Gaming intends to use Ethereum as a core financial reserve, following a framework reminiscent of MicroStrategy’s widely publicized investments in Bitcoin.
As part of the agreement, Joseph Lubin will assume the role of Chairman of SharpLink’s Board upon completion of the placement. Lubin expressed enthusiasm about deepening ties with SharpLink, emphasizing the significant implications for Ethereum’s growth and adoption.
SharpLink CEO Rob Phythian called the development “a significant milestone” and said he welcomes Lubin’s expertise and vision in guiding SharpLink’s integration of Ethereum-based strategies into its core business model.
Despite this pivot toward crypto-assets, SharpLink Gaming reaffirmed its ongoing commitment to serving key markets, particularly the U.S. sports betting landscape and the global iGaming sector.
The placement involved direct private offerings preserved with registration rights permitting subsequent resale of shares; A.G.P./Alliance Global Partners acted as the exclusive placement agent.
SharpLink’s historic pivot to ETH as a primary treasury asset positions it among a pioneering class of publicly traded companies embracing decentralized digital currency as strategic investment heaters, signaling a notable shift in attitude and exposure opportunities available to institutional investors.
