SharpLink Gaming Bets Big on Ethereum Treasury Strategy
Nasdaq-listed betting platform SharpLink Gaming has unveiled an Ethereum-centric treasury strategy, signaling a major shift in how public companies manage digital assets. Ethereum co-founder and Consensys CEO Joseph Lubin has been chosen to be the company’s board chairman.
The decision to go publicly was made public together with news of a PIPE agreement worth $425 million, joined by major venture investors from the crypto world, like Consensys, Pantera Capital, Electric Capital, ParaFi and Galaxy Digital.
SharpLink Leads Public Shift Toward Ethereum
Lubin shared that Consensys anticipates engaging with SharpLink on building and executing an Ethereum Treasury Strategy and serving as a key advisor within the company as it grows.
The news caused the company’s stock price to more than double, now trading at about $33.50 per share. The day before, the stock was under $7, but it started the new day strongly by rising at market open.
SharpLink will use the new funds to begin its Ether-based treasury plan as Ethereum will become the company’s main treasury reserve asset. The funds, according to the firm, are meant to support overall growth within the company. All being well, the process is set to finish with expected closing on or around May 29.
As a result, SharpLink Gaming is leading the way for public companies adding Ethereum to their treasuries. Bitcoin has led the way in corporate crypto asset adoption so far. Major companies that have tried ETH such as Meitu, KPMG Canada, and Reddit, have usually scaled down or ended their use of it.
While Consensys did not speak in detail, it shared that it has invested in SharpLink. Other investors backing the company are Arrington Capital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, and Primitive Ventures. Company executives Rob Phythian and Robert DeLucia joined the investment.
Now that traditional finance and blockchain are interworking, SharpLink’s lead in Ethereum-based solutions might launch a surge of treasury investment beyond Bitcoin, especially with one of Ethereum’s creators at the helm.
