SharpLink Gaming Unveils $425M Ethereum Treasury Plan, Stock Soars 433%

SharpLink Gaming, Inc. (Nasdaq: SBET), which does affiliate marketing via casino and betting websites, today announced a strategic pivot: the initiation of a $425 million Ethereum treasury strategy.

"This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business," said Rob Phythian, founder and CEO of SharpLink.

To raise the funds, SharpLink entered into securities purchase agreements for a private investment in public equity (PIPE) for the purchase and sale of 69,100,313 shares of common stock at a price of $6.15 per share ($6.72 per share for certain members of the Company's management team), according to an announcement .

These funds are primarily intended to acquire ETH, the native cryptocurrency of the Ethereum blockchain, which will serve as SharpLink's primary treasury reserve asset, the company said.

The move sent SharpLink's stock soaring, experiencing a 433.18% boost to close at $35.83 on Tuesday, up $29.11, following the announcement.

MetaMask wallet maker ConsenSys, founded by Ethereum co-founder Joseph Lubin, is the lead investor in this private placement. The offering also saw participation from a host of prominent crypto venture capital firms and infrastructure providers, including ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, and others, signaling strong institutional confidence in the strategy.

Crucially, Lubin will join SharpLink's Board of Directors as Chairman upon the closing of the private placement, expected around May 29, 2025.

The news has also provided a boost to the broader Ethereum market. ETH is currently trading at $2,639, marking a 4% increase in the past 24 hours. Market analysts note that this development could provide "new narrative fuel" for Ethereum, positioning it as a "digital reserve collateral" and potentially driving its adoption on mainstream balance sheets, much like Michael Saylor's Strategy (Nasdaq: MSTR) has done for Bitcoin.

Futures market activity for Ether has also seen a significant uptick following the announcement, with open interest hitting new highs.