SharpLink Gaming Stock Sinks After $400 Million Sale to Buy More ETH
SBET falls 6.6% as SharpLink raises $400 million to grow its Ethereum holdings past $3 billion.
SharpLink Gaming shares closed down 6.6% at $22.34 on August 11 following the company’s announcement of a $400 million stock sale designed to fund additional ETH purchases for its corporate treasury.
The Minneapolis-based company entered securities purchase agreements with five global institutional investors. The deal prices common stock at $21.76 per share and generates gross proceeds of approximately $400 million before fees. The registered direct offering is expected to close on August 12, subject to standard conditions. SharpLink set its second-quarter earnings call for August 15.
SharpLink will use the capital to acquire more Ethereum as part of its treasury strategy. A.G.P./Alliance Global Partners serves as the sole placement agent, while Cantor acts as financial advisor.
The company reported holding about 598,800 ETH as of August 10, with roughly $200 million in at-the-market proceeds still available for deployment. After the latest offering closes, SharpLink expects its ETH holdings to exceed $3 billion in value.
The $400 million sale represents the second major funding round in recent days. On August 7, SharpLink completed a separate $200 million registered direct offering with four institutional investors, also designated for ETH purchases.
During the week of July 28 through August 1, the company raised $264.5 million in net proceeds through its at-the-market program and increased total ETH holdings to more than 521,000 coins as of August 3.
Co-CEO Joseph Chalom said raising nearly $900 million in capital over the past week demonstrates market confidence in SharpLink’s ETH treasury strategy. The funding approach ties a substantial portion of SharpLink’s balance sheet to Ethereum’s price performance.
SharpLink operates as an online performance marketing company with origins in sports media and gaming. The company trades on the Nasdaq Capital Market under ticker SBET and adopted ETH as its primary treasury reserve asset.
Related: Joe Lubin Outlines SharpLink’s Plan to Outpace Rivals in ETH Accumulation
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