SharpLink Gaming, one of the largest publicly traded Ethereum (ETH) treasury companies, today announced that it has raised $76.5 million in a direct equity offering at above-market rates. Some of the proceeds will likely be used to purchase more ETH.
SharpLink raises $76.5 million to buy more Ethereum.
SharpLink Gaming announced this morning that it has entered into a securities purchase agreement with an undisclosed institutional investor to purchase and sell 4.5 million shares of its common stock.
Notably, the Minneapolis-based company said it sold shares for $17 per share, a 12% premium over the market rate of $15.50 recorded at the close of trading on October 15. This is also a premium to the company's current net asset value (NAV) of 840,124 ETH.
The offering is expected to close on October 17, subject to satisfaction of customary closing conditions. Joseph Chalom, Co-CEO of SharpLink, said of the development:
This is a new share sale transaction that is strategically structured and beneficial to our shareholders, reflecting strong institutional confidence in SharpLink and our long-term vision. By raising capital at a meaningful premium to both market price and NAV, we can continue to accumulate ETH and increase ETH per share for our investors.
He added that Ethereum adoption continues to grow among both retail and institutional investors across a variety of sectors including stablecoins, decentralized finance (DeFi), and tokenized assets.
Following today's announcement, SharpLink's stock price has fallen slightly, trading at $15.07 at the time of this writing. However, the stock is up a whopping 445% in the past six months, mainly thanks to the rise in the price of ETH.
As mentioned earlier, SharpLink currently ranks second among listed companies in terms of the amount of ETH held in its treasury. bitmine technology continue ETH leads the way with over 3 million on its balance sheet, according to data from Coingecko.
Are Crypto Treasurys Still Popular?
The practice of companies developing cryptocurrency financial strategies has become increasingly popular over the past few years. The pace accelerated after cryptocurrency supporter Donald Trump won the November 2024 US presidential election.
This trend is not limited to major digital assets such as Bitcoin (BTC) or Ethereum; companies are also exploring cryptocurrency treasury strategies focused on other altcoins, such as: Solana (SUN), Avalanche (AVAX)and Dogecoin (DOGE).
That said, some warning signs have led investors to doubt the benefits of a cryptocurrency-focused financial strategy for the company's finances. For example, Metaplanet’s recent valuation knock down It is lower than the total BTC value held on the balance sheet.
Likewise, Michael Saylor's Strategy stock, the world's largest listed company by BTC holdings, poor performance Over the past few months. At press time, ETH is trading at $3,921, down 1.7% in the last 24 hours.
Featured image from Unsplash.com, Chart Finance from Yahoo!, CoinGecko, TradingView.com
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
