SharpLink Announces $1 Billion Ethereum Acquisition Plan

TLDR

• SharpLink plans to raise $1 billion through stock offering.
• Company aims to integrate Ethereum into its iGaming business.
• Joseph Lubin will become Chairman post-private placement completion.

SharpLink Gaming Inc., a company listed on Nasdaq, has announced plans for a $1 billion shelf offering to acquire Ethereum. This comes alongside a $425 million private placement aimed at initiating a treasury strategy involving Ethereum. These initiatives mark significant steps for SharpLink into the realm of cryptocurrency.

On May 29, 2025, SharpLink filed an S-5 prospectus outlining the details of this stock offering. The company intends to raise approximately $1 billion in gross proceeds by selling up to 72,051,288 shares of common stock. The assumed sale price is based on the last reported Nasdaq trading price of $79.21 per share.

Ethereum Acquisition and New Treasury Strategy

SharpLink’s recent $425 million private placement, disclosed on May 27, 2025, is designed to fund an Ethereum treasury strategy. The company has indicated that a large portion of the $1 billion proceeds will be used to acquire Ether. This move aligns with the company’s efforts to integrate its iGaming business with Web3 technology, potentially utilizing smart contracts or developing a blockchain-based player rewards system.

Joseph Lubin, Ethereum co-founder and CEO of ConsenSys, is set to become the Chairman of SharpLink’s Board upon completion of the private placement. His involvement underscores the strategic shift towards blockchain and cryptocurrency. This initiative by SharpLink may act as a catalyst for other companies to explore similar strategies, impacting the broader cryptocurrency market.

At-the-Market Offering Structure

SharpLink’s stock sale will be executed via an at-the-market offering structure. This approach provides the company flexibility to issue shares over time through a sales agent or principal, rather than all at once. This allows SharpLink to better respond to market conditions while pursuing its crypto acquisition objectives.

The remaining proceeds from the offering will be allocated for general business purposes. These include working capital, operating expenses, and expanding SharpLink’s core affiliate marketing operations. By partially focusing on ethereum, SharpLink is taking a distinctive stance compared to the predominantly Bitcoin-centric strategies seen in the market.

Market Impact and Potential Challenges

The announcement has already had an impact on SharpLink’s stock performance, with reports of a surge following the news. However, this strategic move also carries potential challenges. These include asset impairment risks due to ethereum’s price volatility, which could impact the company’s financial statements if prices drop below book value.

Institutional adoption of ethereum as a treasury asset remains relatively rare compared to bitcoin. SharpLink’s initiative could signify a broader trend towards embracing ethereum within corporate treasury strategies. However, this strategy introduces new risks that companies will need to manage effectively.