SharpLink secures $425M to buy Ethereum as strategic reserve
Key points
- SharpLink Gaming announces $425 million private investment in public equity (PIPE).
- Consensys leads the round with support from major crypto venture firms.
- Proceeds will be used to acquire Ethereum (ETH) as a treasury reserve asset.
SharpLink Gaming, Inc. (NASDAQ: SBET) has entered into a private investment in public equity (PIPE) agreement valued at approximately $425 million.
The deal involves the sale of over 69 million shares at $6.15 per share, with a slightly higher price of $6.72 for shares purchased by the company’s management. The closing is expected on or around May 29, 2025, pending standard conditions.
The transaction was led by Consensys Software Inc., the blockchain company founded by Ethereum co-founder Joseph Lubin.
Other well-known crypto-focused investors also took part, including Pantera Capital, Electric Capital, Galaxy Digital, ParaFi, and Republic Digital. SharpLink’s CEO Rob Phythian and CFO Robert DeLucia also participated in the offering.
SharpLink plans to use the funds to acquire ETH, the native token of the Ethereum blockchain.
According to the company, ETH will be used as its primary treasury reserve asset, though part of the funding may also be allocated to meet working capital needs and other general expenses.
“This marks a major step for SharpLink as we expand beyond our traditional focus,” said CEO Rob Phythian. “We’re excited to welcome Joseph Lubin to the Board and begin working closely with Consensys.”
Lubin expressed similar enthusiasm about the partnership, stating that Consensys will assist SharpLink in developing an Ethereum-based treasury strategy. He also noted that the move signals a growing connection between public markets and Ethereum-based financial infrastructure.
A.G.P./Alliance Global Partners served as the sole placement agent for the offering. The securities are being issued through a private placement under exemptions from the U.S. Securities Act registration requirements. SharpLink has committed to registering the resale of these shares with the SEC under a separate agreement with the investors.
The offering does not represent a public sale and cannot be marketed or sold in jurisdictions where such an offering is not legally permitted.
Ethereum saw a strong bounce today, jumping from below $2,525 in the early hours to over $2,650 by afternoon, a gain of more than $125 in less than 12 hours.
After dipping overnight, buyers stepped in hard afteer the announcement, pushing ETH higher.
Alex Numeris
Founder of Crypto Street - 11+ years trading and building in crypto markets - through bull runs, bear markets, and everything in between.