SharpLink Gaming, which has transformed from a sports betting marketing company to an Ethereum treasury company, announced a $400 million deal on Monday to help it purchase more cryptocurrency, closing the trading day with a loss.
SharpLink stated on Monday that it has signed a share purchase agreement with "five global institutional investors," which will help increase its Ethereum (ETH) holdings, adding that it expects their value to exceed $3 billion.
The deal sells its shares at a price of $21.76 per share, with total proceeds of $400 million, expected to be completed on Tuesday, subject to conditions.
SharpLink holds the second-largest ETH holdings among publicly listed companies, with Ethereum co-founder Joseph Lubin serving as its chairman. It is one of dozens of companies that have recently joined the trend of raising funds to purchase cryptocurrency.
SharpLink Gaming (SBET) shares closed down more than 6.6% at $22.34 after the announcement of the deal on Monday. The stock slightly rebounded after hours, rising nearly 3.5% to $23.10.
The decline on Monday reversed some of the gains the stock had enjoyed over the past five trading days, having reached a high of over $28 earlier in the day.
Since increasing its Ethereum holdings in May, SharpLink has risen a cumulative 17.5% over the past five trading days and has increased 189% year-to-date.
In mid-June, the company saw a drop of up to 73% in after-hours trading due to its application to potentially resell 58.7 million shares of common stock. Joseph Lubin later posted on the X platform that someone "misunderstood the content of the SBET documents" and stated that this was part of standard procedure.
As of Sunday, SharpLink has accumulated 598,800 ETH, with a current market value of $2.57 billion, calculated at an Ethereum price of approximately $4,300. Its ETH holdings are second only to Bitcoin mining service provider BitMine Immersion Technologies, which holds over 1.15 million ETH, with a market value of nearly $5 billion.
In the past week, the company has raised nearly $900 million in total financing. SharpLink co-CEO Joseph Chalom stated that this "highlights the market's confidence in SharpLink's ETH custody strategy."
He added, "The speed and scale of these investments not only reflect investors' trust in SharpLink but also indicate that the transformative potential of Ethereum is gaining broader recognition."
Last Thursday, SharpLink announced a $200 million private placement agreement with four undisclosed institutional investors. Just days earlier, on August 5, the company net-financed $264.5 million through a market price issuance.
In its latest announcement, SharpLink stated that approximately $200 million raised through market price issuance remains unused.
After months of lagging behind Bitcoin, Ethereum has recently made a strong comeback, nearing its historical highs.
According to CoinGecko, the price of ETH has remained relatively stable over the past 24 hours but has risen 44.5% over the past 30 days, climbing from below $3,000 to above $4,300 on Monday.
The current price is $4,278, just 12% shy of the historical high of $4,878 set on November 10, 2021.
Related: ARK Invest invests $19 million to increase its stake in Block, a company owned by Jack Dorsey, with the transaction price dropping to $73 per share.
Original article: “SharpLink Gaming's stock drops after announcing $400 million Ethereum (ETH) acquisition plan”
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