SharpLink Raises $425M in Private Placement to Back Ethereum Treasury Strategy

SharpLink Gaming has announced a $425 million private placement aimed at adopting Ethereum (ETH) as its primary treasury reserve asset. This strategic move signals a significant transformation for the company, positioning it to engage more deeply with the Ethereum ecosystem.

Following this announcement, SharpLink Gaming shares surged over 420%, currently trading at $33.74.

SharpLink to Adopt Ethereum as Primary Treasury Reserve Asset

The U.S.-based firm entered into securities purchase agreements for a private investment in public equity (PIPE). The company is selling approximately 69.1 million shares at $6.15 per share, with management paying $6.72 per share. According to the press release, the transaction is expected to generate around $425 million in gross proceeds.

The proceeds will be channelled towards the acquisition of Ethereum, the second-largest crypto asset. The offering is expected to close on or around May 29, 2025, pending the fulfillment of customary closing conditions. Notably, this move mirrors Michael Saylor’s Strategy Bitcoin play.

Moreover, it marks a major shift from SharpLink’s traditional focus on performance-based marketing in U.S. sports betting and global iGaming.

Consensys CEO to Join SharpLink’s Board

The investment round is led by Consensys Software, a firm founded by Ethereum co-founder Joseph Lubin. Other notable participants include prominent crypto venture firms such as ParaFi Capital, Electric Capital, Pantera Capital, Galaxy Digital, and Arrington Capital.

Furthermore, Lubin will become Chairman of the Company’s Board of Directors upon finalization of the deal. This will likely mark a deeper alignment between SharpLink and the Ethereum ecosystem.

“This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business. On closing, we look forward to working with Consensys and welcoming Joseph to the Board,” said Rob Phythian, Founder and CEO of SharpLink.

Lubin also expressed his enthusiasm to partner with SharpLink to explore and develop an Ethereum Treasury Strategy. He also looks forward to working with them in their core business as a strategic advisor.

The company stated that it will continue to serve the U.S. sports betting and global iGaming markets. However, the ETH strategy signals a dual identity as both a public vehicle and one with crypto exposure.

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