- SharpLink Gaming is rapidly acquiring Ethereum, positioning itself to become the largest corporate holder of the cryptocurrency.
- The company is buying “tens of millions of dollars” in Ethereum daily, according to Joe Lubin, who sits on SharpLink’s board and leads ConsenSys.
- SharpLink raised $425 million through a stock sale to fund its ongoing Ethereum purchases, making the cryptocurrency its main reserve asset.
- SharpLink’s Ethereum holdings are fully committed to staking and restaking, allowing the company to earn additional cryptocurrency rewards.
- The company’s share price experienced extreme volatility, spiking and then dropping after SEC filings related to insider share sales.
SharpLink Gaming, a sports and online casino marketing firm listed on public markets, is making sizeable daily acquisitions of Ethereum in a move that could soon make it the largest corporate holder of the digital token. The company, based in the United States, has made these purchases part of its expansion beyond its original business focus.
Joe Lubin, co-founder of Ethereum and the head of software company Consensys, as well as chair of SharpLink’s board, said Tuesday that SharpLink is buying “tens of millions of dollars” in Ether each day. As of Thursday, SharpLink reported Ethereum holdings worth $612 million. The Ethereum Foundation currently holds about $725 million in Ether.
Lubin told CNBC that, “We are accumulating more and more consistently — we’re able to acquire tens of millions of dollars in Ether a day.” The company has made Ether its main treasury reserve asset, following a $425 million stock sale to investors including Consensys. SharpLink’s board announced the change in May.
This strategy mirrors tactics seen elsewhere in the crypto industry, such as by another firm that has built a large Bitcoin reserve since 2020. Lubin told DL News that Ethereum’s weaker performance compared to Bitcoin and Solana was a factor behind this approach. After announcing its new focus, SharpLink’s shares briefly surged by 2,700%, reaching a high of $124 on May 30. The stock later declined 75% after an SEC filing allowed insiders to sell shares, although Lubin denied that he or Consensys had sold any.
Proceeds from SharpLink’s stock sales are being used to buy even more Ethereum, the company said, including $37 million from a recent $64 million capital raise. The company deploys all its Ether in staking protocols—blockchain processes that generate additional income by validating transactions—and has earned 322 Ethereum since June 2.
The Strategic ETH Reserve website, which tracks large Ethereum holders, lists SharpLink as the second-largest entity after the Ethereum Foundation. Other top holders include PulseChain, Coinbase, and the Golem Foundation.
SharpLink’s shares, after falling below $10 in June, have since recovered to $18. Meanwhile, Ethereum’s price reached $2,967 on Thursday, its highest since early February.
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