SharpLink Gaming, Inc. (NASDAQ: SBET), a company initially known for its iGaming affiliate marketing network, has made a bold move into the digital asset space, acquiring 176,270.69 ETH for approximately $463 million. This acquisition, announced on June 13, 2025, positions SharpLink as the largest publicly-traded holder of Ethereum (ETH) globally, second only to the Ethereum Foundation itself in terms of ETH holdings.
The company's strategic shift represents a significant transformation of its business model, effectively turning SharpLink into an Ethereum investment vehicle. The acquisition was funded through a combination of a private placement and at-the-market (ATM) equity sales, including $79 million raised since May 30, 2025. The average acquisition price for the ETH was $2,626 per coin, inclusive of fees and expenses.
SharpLink's decision to make ETH its primary treasury reserve asset reflects a strong belief in the future of digital commerce and decentralized applications. Rob Phythian, CEO of SharpLink Gaming, stated that the company views Ethereum as "foundational infrastructure" and that the move demonstrates a deep conviction in its role as programmable, yield-bearing digital capital.
The company is not simply holding the acquired ETH; over 95% of SharpLink's ETH holdings are actively deployed in staking and liquid staking solutions. This strategy allows SharpLink to generate yield while simultaneously contributing to the security and operational efficiency of the Ethereum network. This approach aligns SharpLink's financial interests with the broader Ethereum ecosystem, fostering a mutually beneficial relationship.
Joseph Lubin, Chairman of SharpLink Gaming and Co-Founder of Ethereum, hailed the acquisition as a "pivotal milestone and innovative approach to the institutional adoption of Ethereum." He emphasized that by allocating significant capital to ETH and participating in network activities like staking, SharpLink is contributing to Ethereum's long-term stability and trust while earning additional ETH in the process.
SharpLink's move has been compared to MicroStrategy's Bitcoin-centric strategy, marking it as the first Nasdaq-listed company to adopt an ETH-based treasury model. The company aims to provide its shareholders with meaningful economic exposure to ETH, reflecting its confidence in the cryptocurrency's potential for future growth and widespread adoption.
The acquisition has had a notable impact on SharpLink's financials. The company disclosed that it raised an additional $79 million through its ATM facility, with a majority of the proceeds used to fund further ETH purchases. These collective purchases have generated an 11.8% growth in ETH per share since June 2, 2025.
However, the market reaction to SharpLink's strategic shift has been mixed. While the company touts the long-term benefits of its ETH-focused strategy, the announcement led to a significant drop in SharpLink's stock price. On June 13, 2025, SharpLink Gaming stock (SBET) experienced a sharp decline, reportedly sinking by as much as 65% in pre-market trading. This decline may reflect investor uncertainty or skepticism regarding the company's new direction, particularly given its previous focus on the iGaming sector.
Despite the initial market volatility, SharpLink remains committed to its Ethereum treasury strategy. The company's leadership believes that the long-term potential of Ethereum outweighs the short-term risks and that its strategic investment will ultimately deliver significant value to shareholders. SharpLink's bold move could pave the way for other publicly-traded companies to adopt similar strategies, further accelerating the institutional adoption of Ethereum and other digital assets.
