Overview

SharpLink Gaming, a Nasdaq-listed firm engaged in an Ether treasury strategy, saw its shares decrease by 70% during after-hours trading after filing a new registration with the U.S. Securities and Exchange Commission (SEC).

Key Points

• SharpLink Gaming filed an S-3ASR registration for nearly 59 million shares related to a private investment in public equity (PIPE) financing, allowing shareholders to sell their shares.
• The company’s recent capital raise of $450 million aimed to bolster its Ethereum reserve strategy has raised questions regarding a potential broader financial strategy. Speculators believe they may have accessed funding for an additional $1 billion through an ATM offering previously announced.

“If they played cards right, they would expect a surprise PR tomorrow with $1B of ETH purchases, which could light the match to reignite the stock,” stated Allen in a social media post.

In the last 24 hours, ETH has dropped by about 4.1%, trading at approximately $2,650, amidst a broader decline in cryptocurrency values.