SharpLink Acquires 170,000 ETH, Second Only to the Ethereum Foundation; Is It Worth Buying Despite a 70% Stock Price Drop?
SharpLink Becomes the Second Largest ETH Holder After Ethereum Foundation
On May 31, 2023, the American online gaming company SharpLink announced its entry into the Ethereum (ETH) strategic reserve, and on June 13, it revealed that it had purchased 176,270.69 ETH at a total cost of $460 million. This move makes SharpLink the largest publicly traded company holding Ethereum reserves globally, second only to the Ethereum Foundation.
SharpLink Purchases 176,000 ETH, Second Only to Ethereum Foundation
SharpLink announced that it had bought 176,270.69 ETH at a total expenditure of $460 million, solidifying its position as the largest publicly traded company with Ethereum reserves and the second largest ETH holder following the Ethereum Foundation.
The funds for this purchase came from the initial private equity (PIPE) transaction conducted on May 26, 2025, as well as approximately $79 million raised through an at-the-market (ATM) equity offering.
According to documents previously submitted by SharpLink Gaming in the S-3 filing, SharpLink Gaming anticipates raising up to $1 billion through one or multiple issuances of common stock, preferred stock, warrants, and bonds.
(SharpLink Announces $1 Billion Ethereum Reserve Plan, SBET Stock Price Soars After Multiple Trading Halts)
95% of Ethereum Staked 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 yield while contributing to the security of the Ethereum network.
Rob Phythian, CEO of SharpLink Gaming, stated, “This is a milestone moment for SharpLink and publicly traded companies adopting digital assets. We believe Ethereum is the infrastructure for future digital commerce and decentralized applications. Our decision to make ETH our primary reserve asset reflects our firm 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 applications of Ethereum. This strategy emerges at a unique time as the U.S. Congress pushes for significant legislation on stablecoins and digital asset market structures. We hope such legislation can act as a catalyst for Ethereum technology. By investing substantial capital and deploying it in network activities like staking, SharpLink contributes to the long-term security and trust attributes of Ethereum and thus earns additional ETH.”
SBET Surges from $6 to $124, Then Crashes Back to $9
On June 12, SharpLink filed an S-3 form with the SEC, registering over 58.7 million shares for potential future resale, which the market interpreted as an impending large sell-off, triggering panic selling that caused the stock price to plummet by over 70% in a single day, nearly reverting to its original level.
However, a closer look at the submission reveals that the subscription prices for PIPE and other investors range between $6.16 and $7.995, which is only a 15% to 50% increase from the current price of $9.21, suggesting that such returns may not be satisfactory for angel investors.
This also highlights that traditional market investors may lack the psychological preparedness to handle the volatility of crypto assets. The ability of SBET to soar from $6 to $124 and then crash back to $9 within a few days exemplifies the extreme fluctuations of such crypto stocks that ordinary people may find difficult to endure!
(Not Every Company Can Be MicroStrategy: Examining the Risks of Crypto Reserve Companies Through SharpLink’s 70% Plunge)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be extremely volatile. You may lose all your principal. Please assess the risks carefully.
