SharpLink Gaming, a Minneapolis-based firm, has successfully raised $200 million from institutional investors through a direct stock offering. The primary objective of this funding round is to expand the company’s Ethereum (ETH) holdings beyond $2 billion. The offering, priced at $19.50 per share, was led by A.G.P./Alliance Global Partners, with Societe Generale acting as the co-placement agent and Cantor Fitzgerald serving as the financial advisor for the deal. The funding round is expected to close on August 8.
The funds raised will be exclusively used to acquire more Ethereum, following a recent disclosure of a $304 million ETH acquisition by SharpLink. This acquisition, which consisted of 83,561 ETH purchased at an average price of $3,638, brought the company’s total ETH reserves to 521,939 ETH, valued at approximately $1.9 billion. SharpLink has been aggressively building its ETH treasury over the past two months, utilizing over $540 million in at-the-market (ATM) equity sales to rapidly scale its position.
As a result of these strategic acquisitions, SharpLink has quickly risen to become the second-largest corporate ETH holder tracked by SER, a digital asset treasury data service, trailing only behind BitMine. While BitMine holds 833,137 ETH valued at nearly $3 billion, SharpLink has adopted a more focused approach, viewing Ethereum as an “infrastructure reserve” that provides long-term exposure to the DeFi ecosystem.
All of SharpLink’s ETH holdings are currently staked, generating over $3.4 million in rewards since June. This staking strategy introduces a compounding dynamic, allowing for reinvestment of rewards as ETH’s price and staking yields increase, further growing the company’s treasury. The concentration of ETH holdings per 1,000 diluted shares has increased by 83% over the same period, demonstrating the significant impact of the treasury on shareholder equity.
SharpLink, originally known for its involvement in gaming and sports betting infrastructure, is now repositioning itself around its ETH-centric treasury strategy. This shift reflects a broader trend among tech companies that are utilizing crypto reserves not only for speculative purposes but also as fundamental components of their long-term corporate financial infrastructure.
In conclusion, SharpLink’s successful fundraising efforts and strategic acquisitions demonstrate its commitment to building a robust Ethereum treasury and positioning itself as a key player in the evolving landscape of digital asset management.