- SharpLink Gaming filed to raise up to US$1B through a public stock offering, planning to convert “substantially all” proceeds into ETH for its Ethereum corporate treasury.
- The news of the Ethereum treasury a few days ago triggered a 2,100% surge in SharpLink’s stock within a week.
- That same week, Ethereum’s co-founder was also appointed as chairman.
SharpLink Gaming disclosed in an SEC filing its intention of raising up to US$1B (AU$1.56B) through a public stock offering.
The company formally stated its intent to convert “substantially all” of the proceeds into ETH, marking one of the most aggressive treasury commitments to Ethereum by a US-listed firm.
We intend to use substantially all of the proceeds from this offering to acquire Ether, the native cryptocurrency of the Ethereum blockchain commonly referred to as “ETH”. We also intend to use the proceeds from this offering for working capital needs, general corporate purposes, operating expenses and core affiliate marketing operations.
SharpLinkHowever, SharpLink clarified that it can’t fully specify all of the use cases for the net proceeds from the offering, and also highlighted the risks, including the rise of central bank digital currencies (CBDCs), which it says could “eliminate or reduce” demand for privately issued cryptocurrencies, and also stated the dangers of ETH being classified as a security.
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ETH and Bitcoin Treasuries
The move builds on its May 27 announcement of an Ether-based treasury model, which triggered a 400% spike in its stock price during the same day’s trading session. A week later, that stock is up over 2,100%.
That rollout also came with a leadership shake-up: Ethereum co-founder and Consensys CEO, Joseph Lubin, was named chairman of SharpLink’s board.
Lubin spearheaded the strategy, which of course echoed a similar plan to that of Saylor’s Strategy, which recently bought over 4,000 BTC, amid a bunch of legal challenges, of course.
This also comes following other headline-grabbing treasury announcements, starting with Trump Media & Technology, which said it would raise US$2.5B (AU$3.9B) to buy Bitcoin. Unlike SharpLink, its stock dropped 11%. Similarly, GameStop disclosed a 4,710 BTC purchase a day later, and shares then fell 9%.
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