SharpLink Gaming, a prominent player in the cryptocurrency space, recently made headlines by acquiring $174 million worth of Ethereum (ETH). This move has solidified their position among public treasuries, showcasing their commitment to the digital asset. However, Co-CEO Joseph Chalom was quick to point out the risks associated with holding such a large amount of ETH in their treasury.
In a surprising turn of events, Ethereum has been gaining traction among U.S. institutions, with eleven of them adopting ETH strategies this year. This shift in focus from Bitcoin to Ethereum is a testament to the growing popularity and acceptance of the altcoin in traditional financial circles.
SharpLink Gaming’s total holdings of ETH now stand at an impressive 837,230 tokens, with a recent acquisition of 39,008 ETH valued at $176.4 million. This brings their total ETH holdings to $3.66 billion, accounting for approximately 0.694% of Ethereum’s total supply.
The company’s decision to invest heavily in Ethereum has proven to be profitable, with the current price of ETH at $4,366 indicating that they are in the green. Since transitioning to a public company focused on ETH in July, SharpLink has seen a 97% increase in their Ethereum holdings. They have also earned 2,318 ETH in staking rewards, with their ETH Net Asset Value (NAV) standing at $3.68 billion. Additionally, there are plans to stake about 860,369 ETH, valued at $3.7 billion, in September.
Despite the positive developments, SharpLink Gaming’s stock (SBET) has experienced a decline, with a drop of more than 4.71% in the last 24 hours. The stock is currently trading at $16.98, according to data from Yahoo Finance.
Co-CEO Joseph Chalom highlighted Ethereum’s strengths, citing its security and liquidity as key factors that have attracted Wall Street to the digital asset. He also mentioned that the staking component of Ethereum ensures network security, while its widespread use across the crypto space provides liquidity.
To fund their ETH acquisitions, SharpLink raised $400 million from Consensys and other institutional investors. They also generate funds through a daily at-the-market program from new equity investors. The Ethereum acquired is staked to generate yields and make the investment productive. However, Chalom cautioned about the risks associated with ETH treasury firms in the event of a significant market downturn.
In terms of Ethereum treasury holdings, U.S. firms account for 2.68% of the total supply. SharpLink ranks second in terms of holdings, behind BitMine, which holds more than double their amount. BitMine’s total ETH holdings stand at 1.867 million, valued at $8.167 billion, representing about 1.547% of the total ETH supply. Other top U.S. firms holding ETH include Coinbase, Bit Digital, and ETHZilla.
Overall, U.S. firms hold a total of 3.233 million ETH, valued at $14.15 billion, with a 9.9% increase on the day. It is evident that Ethereum is gaining traction not only in the U.S. but also in other jurisdictions like Hong Kong, where Yunfeng Financial holds about 10,000 ETH.
In conclusion, SharpLink Gaming’s significant investment in Ethereum reflects the growing interest and confidence in the digital asset. While there are risks involved, the company’s strategic approach to ETH acquisitions and staking rewards positions them as a key player in the evolving cryptocurrency landscape.