Sharplink adds another 5 billion US dollars to its ETH reserves. Is ETH aiming for 5,000 US dollars?

原創| Odaily星球日報（ @Odaily中國 )

作者：溫瑟（ @溫瑟2010 )

After half a year, the price of ETH has returned to $3,600 today. It has to be said that Sharplink (NASDAQ: SBET), the Ethereum Strategy whose chairman is Joseph Lubin, CEO of Consensys and co-founder of Ethereum, has made great contributions. 今天， Sharplink once again released a blockbuster news : it plans to issue an additional $5 billion in common stock on top of the original $1 billion to further purchase ETH for the companys treasury. Odaily Planet Daily will summarize Sharplinks related actions and explore the potential upside of ETH in this article.

Sharplink’s Crypto Rebirth Journey: From an Unknown Gambling Company to “ETH Strategy”

Before May 27 this year, many people might not be familiar with Sharplink. Although the company, which mainly engages in American sports lottery and sports lottery marketing, began exploring the application of blockchain technology in gambling as early as 2024, and acquired a 10% stake in British company Armchair Enterprises Limited, the operator of CryptoCasino.com, for $500,000 in cash in February this year.

In addition to exploring blockchain business, Sharplinks previous partners include well-known sports brands and leagues such as NBA, NHL, and Turner Sports. The reason why it has not attracted the attention of traditional financial markets and 加密貨幣currency markets before is because its business performance is too poor .

Although the company is a US-listed company, its market value was only about $2 million, and its share price was about $2.9. According to its financial report information, Sharplinks revenue in 2024 was only $3.6623 million, a year-on-year decrease of 26.1% (US$4.9527 million in 2023); operating expenses decreased significantly by 45.6%, from $10.4259 million in 2023 to $5.6692 million, but net income was only $10.1 million (earnings per share of $2.29), compared with a net loss of $14.2432 million (loss per share of $5.19) in 2023, which was mainly due to the proceeds from the divestiture of non-core businesses (Sports Gaming Client Services and SHGN, sold for $22.5 million in cash in January 2024 ) ($14.5733 million). As of December 31, 2024, the companys cash balance was only US$1.4367 million, a year-on-year decrease of 42.2%.

Due to its poor operating conditions, Sharplink had to find other ways out in order to maintain its stock price at no less than the minimum standard of $1 required by Nasdaq; moreover, it did not meet Nasdaqs basic requirement of shareholders equity of at least $2.5 million.

Under internal and external difficulties, Sharplink CEO Rob Phythian and Consensys CEO and Ethereum co-founder Joseph Lubin hit it off. As a result, Sharplink has transformed from a struggling gambling marketing company to the current ETH version of Strategy.

The Miracle of Crypto Stocks’ Skyrocketing: From Less Than $3 to Over $100

On May 27, SharpLink Gaming, Inc. (NASDAQ: SBET) 宣告 the signing of a securities purchase agreement for a $425 million private placement investment, planning to issue approximately 69.1 million shares of common stock (or equivalent securities) at a price of $6.15 per share (or $6.72 per share for members of the companys management team). Consensys Software Inc. led the investment as the main investor, and participating parties included well-known crypto venture capital institutions such as ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital.

As the news came out, Sharplinks stock price soared from less than $3 to over $100 at one point, before falling back to $35.83 after hours and closing at $79.21 on May 29.

In early June, SharpLink Gaming 正式宣布 the completion of a $425 million private placement, led by Consensys. The company plans to use the proceeds to purchase ETH as its main treasury reserve asset, and Joseph Lubin, CEO of Consensys and co-founder of Ethereum, will join its board of directors and serve as chairman. In addition, it should be noted that, apart from the 69.1 million common shares issued by Sharplink, only 2 million shares were available for circulation in the market, and the remaining shares were subject to the registration rights agreement and were expected to be traded in a few months, which also provided a certain buffer period for Sharplink to maintain its listing qualifications and manage its market value.

Since then, Sharplink has started the crazy ETH buying, buying, buying phase, and the price of ETH has also started to rise.

Sharplink Stock Price Trend

ETH price candlestick

In less than two months, Sharplink purchased a large number of ETH through various channels such as OTC and crypto exchanges. As of July 16, the company has purchased more than 300,000 ETH at an average price of approximately US$2,701, with a floating profit of US$130.9 million.

In the past two days, Sharplink has been making frequent purchases. The most recent increase took place this morning. It first added 18,712 ETH (worth approximately US$65.45 million) to its Ethereum strategy reserve; then it increased its holdings by another 14,180 ETH (worth approximately US$50.1 million). Today, it has purchased a total of 32,892 ETH (worth approximately US$115 million).

此外，根據 the ETH reserve website , when Sharplink held 280,000 ETH, its floating profit had grown to about $286 million; currently, its ETH holdings have reached a terrifying 340,000, worth nearly $1.2 billion. And this is just the beginning.

ETH Reserve Website Top 10 Information

Sharplink plans to raise an additional $5 billion to increase its ETH holdings

The latest news shows that Sharplink has submitted an updated prospectus to the U.S. Securities and 交換 Commission (SEC), planning to issue an additional $5 billion in common stock on top of the original $1 billion to further purchase Ethereum (ETH) for the companys treasury. 市場 analysts believe that Sharplinks potential $5 billion purchase is expected to boost ETH prices to at least over $5,000.

On the other hand, Sharplinks market value has soared from about $2 million to about $3.6 billion now. Despite a nearly 35-fold increase in stock issuance, its market value has soared by about 1,800 times, making it a fighter among U.S. stocks. The latest data shows that its after-hours stock price is currently $37.41, with a 24-hour increase of about 2.77%.

相比之下， the share price of Strategy , which launched the BTC Strategic Reserve Plan for Listed Companies, has risen from US$300 at the beginning of the year to the current after-hours price of US$458, with an annual increase of 55.84%. Its market value is temporarily reported at US$126.8 billion; while the share price of Sharplink (SBET) has risen from around US$8 at the beginning of the year to around US$36 now, with an annual increase of approximately 374%.

Compared with the huge Strategy, Sharplink, which occupies the ETH version of Strategy ecological niche, is expected to replicate its stock price miracle and double its price again.

This article is sourced from the internet: Sharplink adds another 5 billion US dollars to its ETH reserves. Is ETH aiming for 5,000 US dollars?

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