SharpLink Gaming Increases Ethereum Holdings
SharpLink Gaming has recently updated its investment portfolio by significantly increasing its Ethereum holdings, which are now valued at a staggering $3.5 billion. This bold move includes the acquisition of 19,271 ETH, finalized in October at an average cost of $3,892 each. The funding for this purchase comes from a successful capital raise of $76.5 million that the company completed shortly before the acquisition.
Joseph Chalom, co-CEO of SharpLink, noted that the recent capital raise was achieved at a premium over net asset value (NAV), allowing them to buy ETH at a better market rate soon after.
SharpLink’s Position in the Market
With this latest purchase, SharpLink’s total Ethereum stash has reached 859,853 ETH, placing it among the largest corporate holders of this cryptocurrency. The firm’s total assets, including cash, now stand at around $3.5 billion. Since its launch in June, SharpLink’s “ETH Concentration” metric—a key performance indicator measuring the quantity of ETH held per 1,000 diluted shares—has doubled to reach a level of 4.0.
Staking Operations and Market Response
In addition to expanding its reserves, SharpLink is leveraging its ETH holdings through staking operations that have yielded 5,671 ETH in rewards since June, translating to an estimated value of $22 million at current market rates. However, the financial markets have not responded as positively as the company might have hoped; following the announcement of its latest acquisition, SharpLink’s stock fell by 2.1%. This decline continues a troubling trend for SBET, whose value has plummeted by around 66% since its peak in July, contrasting sharply with the escalating worth of its Ethereum assets.
Competitive Landscape
Remarkably, this development follows closely on the heels of a related announcement from BitMine, SharpLink’s rival, which reported a massive treasury accumulation of 3.24 million ETH. With such competitive movements in the cryptocurrency space, the stakes are rising in the race for dominance among corporate investors in Ethereum.
