SharpLink Enters Ethereum (ETH) Strategic Reserve
On May 31, the American online gaming company SharpLink announced its entry into the Ethereum (ETH) strategic reserve and on June 13, it declared that it had purchased 176,270.69 ETH for a total expenditure of $460 million, becoming the largest publicly traded company with Ethereum reserves globally and the second largest ETH holder after the Ethereum Foundation.
SharpLink Purchases 176,000 ETH, Second Only to Ethereum Foundation
SharpLink announced that it has acquired 176,270.69 ETH for a total of $460 million, making it the largest publicly traded company in terms of Ethereum reserves in the world and the second largest ETH holder after the Ethereum Foundation.
The funds for this purchase of Ethereum came from a Private Investment in Public Equity (PIPE) transaction conducted on May 26, 2025, as well as approximately $79 million raised through the issuance of new shares at market price (ATM).
According to the S-3 filing previously submitted by SharpLink Gaming, the company anticipates raising up to $1 billion through the issuance of common stock, preferred stock, warrants, and bonds in one or more offerings.
Staking 95% of Ethereum to Generate Native Yield
As of June 13, 2025, over 95% of the ETH held by SharpLink is actively deployed in staking and liquidity staking solutions, generating native yields while contributing to the security of the Ethereum network.
Rob Phythian, CEO of SharpLink Gaming, stated: “This is a milestone moment for SharpLink and for publicly traded companies adopting digital assets. We believe that Ethereum is the infrastructure for the future of digital commerce and decentralized applications. Our decision to make ETH our primary reserve asset reflects our strong belief in ETH as programmable, yield-generating digital capital.”
Joseph Lubin, Chairman of SharpLink Gaming, co-founder of Ethereum, and founder and CEO of Consensys, added: “SharpLink’s bold ETH strategy represents a key milestone and innovative approach for institutional adoption of Ethereum. This strategy comes at a special time when the U.S. Congress is pushing to pass significant legislation on stablecoins and digital asset market structure. We hope such legislation will serve as a catalyst for Ethereum technology. By deploying substantial capital into network activities such as staking, SharpLink contributes to the long-term security and trust attributes of Ethereum while also earning additional ETH.”
SBET Price Surge and Collapse
On June 12, SharpLink submitted an S-3 filing to the SEC, registering over 58.7 million shares for potential future resale, which was interpreted by the market as a signal of an impending large sell-off, leading to panic selling and a more than 70% drop in stock price within a single day, nearly erasing its gains.
However, a closer examination of the submission reveals that the PIPE investors’ purchase price ranged between $6.16 and $7.995, which, compared to the current price of $9.21, represents only a 15% to 50% increase, a level of return that might not satisfy angel investors.
This situation also highlights the potential lack of psychological preparedness among traditional financial market investors when facing the volatility of crypto assets. SBET saw its price rise from $6 to $124 in just a few days, only to plummet back to $9, a level of fluctuation that is not sustainable for the average investor.
Risk Warning
Investing in cryptocurrencies carries a high degree of risk, and their prices can be extremely volatile. You may lose your entire principal. Please assess the risks carefully.