Quick Summary
- SharpLink Gaming raised $400M to buy more Ether, now holding 598,800 ETH
- Stock dropped 6.6% Monday but recovered 3.5% after hours
- ETH is up 44% this month, trading near its all-time high
SharpLink Gaming Just Raised $400M — Here’s Why It Shook the Market
SharpLink Gaming is leaning hard into crypto. The company, which recently pivoted from sports betting to building one of the biggest Ether treasuries in the world, just closed a massive $400 million share deal. The move is part of its push to scoop up even more Ether (ETH) as prices climb.
But the market didn’t exactly cheer. SharpLink Gaming’s stock fell more than 6.6% on Monday, closing at $22.34. However, it made a small comeback after hours, rising 3.5% to $23.10.
So why the dip? And what’s next?
SharpLink Gaming Bets Big on Ether, Again
On Monday morning, SharpLink Gaming announced it sold shares at $21.76 each to five big institutional investors, raising $400 million. The deal is set to close by Tuesday.
This is just the latest in a string of huge raises. In fact, the company has now brought in almost $900 million in under a week — all to keep buying more Ether. That brings its total ETH stash to 598,800 ETH, worth around $2.57 billion at current prices.
That makes SharpLink Gaming the second-largest ETH holder among public companies, just behind BitMine Immersion Technologies, which holds over 1.15 million ETH.
Why Investors Are Torn on SharpLink Gaming’s Strategy
This isn’t the first time SharpLink Gaming has made waves — and not all of them have been smooth sailing. Just in the last week:
- It raised $264.5 million via an at-the-market offering on August 5
- Then another $200 million from four unnamed institutional investors
- And now this $400 million round
On paper, that looks like a strong show of investor confidence. Even Sharplink’s co-CEO Joseph Chalome said that the speed of these deals “shows how much the market believes in Sharplink’s ether treasury strategy.”
But there’s a flip side. Back in June, the company’s stock crashed 73% after hours when it filed to potentially resell 58.7 million shares.
That triggered panic, even though Chairman Joseph Lubin (also Ethereum’s co-founder) said it was a standard regulatory filing that got blown out of proportion.
Ether Is Booming Again — Perfect Timing?
In fairness, SharpLink’s strategy comes at a very interesting moment for Ether.
In the previous month, Eth has increased by over 44%, which is more than $ 4,300 from $ 3,000. It is currently trading at around $ 4,278 – only 12% less than the peak of $ 4,878 in November 2021.
That’s why this Ether-first strategy doesn’t seem so wild. SharpLink Gaming might make a significant profit if Ethereum continues to rise. And with Ethereum co-founder Joseph Lubin at the helm, they’ve got a strong signal of legitimacy.
That said, Vitalik Buterin — Ethereum’s other co-founder — recently warned treasury-backed firms not to get too aggressive. Overleverage, he says, could backfire.
🔗 Read Vitalik’s latest comments on X
What’s Next for SharpLink Gaming?
At this point, Sharplink Gaming still has about $ 200 million in unused capital. Investors are watching closely to see how they’ll spend it, and whether it adds more value or causes dilution.
The real question is: Can the company keep this momentum without spooking the market again?
If ETH keeps climbing, SharpLink’s big bet might look genius. But if the crypto market cools, the company could be left overexposed. Either way, it’s becoming one of the most interesting publicly traded crypto plays out there.