Sport betting firm, SharpLink Gaming, has made a landmark purchase of 176,271 Ether tokens worth $463 million, emerging as the most prominent Ether holder in public trading markets. The purchase was made through a mix of private sales and on-the-market equity sales, which had raised about $79 million. SharpLink’s purchased Ether tokens at an average price of $2,626 per token.
The Nasdaq-listed company plans to employ over 95% of the acquired ETH on staking and liquid staking platforms. This move aids in yielding returns while enhancing Ethereum’s network security. SharpLink’s CEO, Rob Phythian, marked the occasion as a pivotal moment for the company and a boost towards the adoption of digital assets by public companies.
Taking a cue from Strategy’s Bitcoin acquisition approach, SharpLink is the pioneer public company to primarily focus on Ethereum as a core treasury reserve asset. SharpLink’s ambitious move to Ethereum is set to offer its shareholders significantly economic exposure to this crypto asset, according to its announcement.
Some global entities, however, continue to hold more Ether tokens compared to SharpLink. The Ethereum Foundation now owns 214,129 ETH ($594 million). Also, BlackRock, a prominent provider of crypto exchange-traded funds (ETFs), holds much more Ether, worth approximately $4.5 billion, on behalf of its clientele.
This strategy hasn’t proceeded without backlash. After SharpLink’s announcement relating to the treasury intent on ETH, its share price skyrocketed, increasing by over 400%. However, following the S‑3 SEC filing earlier this week, its shares dramatically dropped by about 73% in after hours trading last Thursday. The sudden fall was triggered by a misunderstanding: the file allowed a potential resale of nearly 58.7 million shares from PIPE members but not an actual sale. SharpLink’s chairman, Lubin, clarified that this was routine regulatory protocol and not a case of insider trading. Notwithstanding the controversy, this move by SharpLink is testament to a growing corporate trend in the adoption of cryptocurrency reserves, particularly with Ether at the center of it all.