Key Highlights:
- SharpLink Gaming’s shares skyrocketed over 400% following its announcement to implement an Ethereum (ETH) treasury reserve strategy.
- Joseph Lubin, co-founder of Ethereum, has accepted a role as chairman of SharpLink’s board as part of this initiative, with his firm, Consensys, leading a significant $425 million investment.
- The Minneapolis-based marketing firm is now following a trend established by MicroStrategy with its Bitcoin treasury strategy.
SharpLink Gaming (SBET) has seen its stock climb 412% after disclosing plans to establish a treasury reserve strategy centered around Ethereum. This plan is bolstered by the participation of Joseph Lubin, one of Ethereum’s original creators.
Currently, shares are valued at $34.45, up from $7 as of last Friday, with a market capitalization of approximately $23 million.
The company is set to raise about $425 million through a private investment in public equity (PIPE) offering, which will fund the purchase of ether to serve as their main treasury reserve asset.
Consensys, co-founded by Lubin, is the primary investor, with additional funding from Pantera Capital, Galaxy Digital, and Ondo, among others. The closing date for this offering is anticipated to be May 29th, coinciding with Lubin’s inauguration as chairman of the board.
SharpLink is among a growing number of companies looking to replicate the significant success linked to treasury strategies involving cryptocurrencies, similar to the path blazed by MicroStrategy in adopting Bitcoin as its treasury reserve, which led to an increase of over 3,000% in its stock price over five years.
In a similar vein, Trump Media & Technology Group announced plans for a $2.5 billion capital raise to kickstart its own Bitcoin treasury strategy.
