SharpLink Gaming (SBET) shares saw a significant decline of 30% in morning trading on Monday, unwinding a portion of the staggering 2,000% increase it experienced last week. The initial surge in stock price—rising from under $3 to over $100 at one stage—followed the announcement of a $450 million capital raise aimed at establishing an ether treasury strategy. Joseph Lubin, one of Ethereum’s co-founders, is set to join the SharpLink board as chairman.
Key Points:
- SharpLink shares dropped 30% in early U.S. trading after last week’s remarkable rise.
- The company confirmed it closed a $450 million capital raise intended for its ETH treasury strategy.
- Martin Shkreli highlighted that only 2 million shares of SharpLink are ready for trade, despite the company issuing 69 million new shares.
When companies issue new stock through private placements, those shares often carry restrictions preventing their resale on public markets until regulatory compliance is fulfilled. As a result, the availability of freely tradable shares may lead to significant price fluctuations. SharpLink’s public trading volume remains minimal, which could have contributed to last week’s explosive price gains, as traders rushed to purchase shares. However, after the unexpected announcement of a major capital raise and new leadership from a recognized figure in the crypto community, the stock is undergoing a minor pullback.
