SharpLink Gaming Sees Surge in Shares as Crypto Treasury Swells to Over 200,000 ETH
SharpLink Gaming, a Minneapolis-based online gaming company, experienced a significant surge in its shares on July 8th following the announcement of a major expansion of its crypto treasury. The company revealed that it had increased its Ethereum (ETH) holdings to over 200,000 coins, sending its shares soaring by nearly 26%.
The company disclosed that it had acquired an additional 7,689 ETH for approximately $19.2 million, at an average price of $2,501 per coin. This move boosted SharpLink’s total ETH holdings to 205,634 coins, now valued at around $533 million based on current market prices.
As a result of this development, the firm’s shares (NASDAQ: SBET) reached an intraday high of $15.93, marking its strongest performance since mid-June. The stock later settled around $14.55 during the session.
SharpLink has been actively converting a significant portion of its corporate treasury into ether, with the aim of establishing ETH as a core reserve asset for the company. Last week, the company raised $64 million through a share sale, with $37.2 million earmarked for the acquisition of additional ETH in the near future.
All of SharpLink’s Ethereum holdings are currently staked or restaked in decentralized finance (DeFi) protocols to generate yield. Since implementing its ETH treasury program on June 2nd, the company has earned 322 ETH in staking rewards, equivalent to approximately $2.1 million at current prices.
In a bid to enhance transparency regarding its crypto strategy, SharpLink introduced a new reporting metric known as ETH Concentration. This metric measures the amount of ETH held for every 1,000 diluted shares outstanding. The company reported that ETH Concentration had increased to 2.37 ETH, up from 2.00 ETH three weeks earlier, reflecting its rapid accumulation of the digital asset.
SharpLink’s treasury strategy aligns with a broader trend observed among technology companies shifting towards digital asset reserves. Bit Digital, a Bitcoin mining and staking firm, saw its shares rise by 18% after announcing the exchange of its entire bitcoin holdings for ether. This move underscores the growing appeal of ETH as an institutional treasury asset, alongside bitcoin.
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has witnessed increased interest from corporate buyers following the approval of spot ether exchange-traded funds in the United States earlier this year. This development has further solidified ETH’s status as an investable and yield-generating digital asset.
With its aggressive approach to accumulating ETH and positioning it as a core reserve asset, SharpLink Gaming continues to make waves in the crypto and gaming industries. The company’s strategic focus on digital assets underscores the evolving landscape of corporate treasuries in the digital age.