SharpLink stock rockets 420% on $425m strategic crypto placement

SharpLink Gaming Raises $425 Million, Adopts Ethereum as Primary Treasury Asset

SharpLink Gaming has secured $425 million in a private placement, with Ethereum co-founder Joseph Lubin stepping in as the company's new Chairman. The gaming firm will now hold Ethereum as its primary treasury reserve asset, mirroring MicroStrategy's well-known Bitcoin strategy.

Key Investors and Leadership Shift

The private investment in public equity (PIPE) round includes the issuance of 69.1 million shares at $6.15 each ($6.72 for management). Consensys Software Inc., founded by Joseph Lubin, leads the investment, joined by major crypto venture firms like ParaFi Capital, Pantera, Electric Capital, Galaxy Digital, and Arrington Capital.

Once the deal closes, Lubin will assume the role of Chairman of SharpLink's Board, deepening the company's ties to the Ethereum ecosystem. "This is an exciting time for the Ethereum community," Lubin remarked. "We look forward to collaborating with SharpLink on their Ethereum Treasury Strategy."

A First for Public Companies

SharpLink's decision makes it one of the first publicly traded companies to anchor its treasury in Ethereum, offering traditional investors a new avenue for exposure to the Ethereum network.

Rob Phythian, SharpLink's CEO, emphasized the importance of this development: "This marks a major milestone in SharpLink's journey. We’re excited to partner with Consensys and welcome Joseph to the Board."

Transaction Details

The private placement was executed under exemptions and includes a registration rights agreement for share resale. A.G.P./Alliance Global Partners served as the sole placement agent.

SharpLink's move highlights Ethereum's expanding role in traditional finance, as more companies explore blockchain technology's potential.