Sports betting platform Sharplink games have become the largest public holder of Ethereum After announcing the $463 million ETH financial strategy. The company has accumulated 176,271 etheric coins as part of its new strategy and has opted for Ethereum cryptocurrency instead of Bitcoin (BTC). The acquisition was funded through a fusion of private placements and market share sales, including $79 million raised since May 30. Sharplink is the first NASDAQ registered company to adopt a Ministry of Finance reserve policy centered around ETH.
According to reports, Sharplink quickly decided to wager most of its newly acquired Ethereum. This approach generates yields, and also enhances the security of Ethereum’s network, adjusting its contribution to the Ethereum Network and its financial benefits. Sharplink CEO Rob Phythian has labelled the ETH acquisition as a “groundbreaking moment” for both the broader landscape of public companies adopting digital currency. “Aether is the cornerstone of our financial strategy right now,” the CEO said this week.
Sharplink continues its growing crypto investment strategy
Sharplink’s move is similar to the strategy of other top companies. The Michael Saylor-led tech company is Bitcoin’s biggest institutional investor and has seen a surge in value and revenue from the company since adopting this strategy. Other companies have attempted similar tactics, including cryptocurrencies, and more recently BlackRock and GameStop. The latter venture has not taken off yet, but Sharplink aims to achieve success with Ethereum Cryptocurrency.
Sharplink Chairman and Ethereum co-founder Joseph Lubin describes the strategy as a “significant milestone” in institutional adoption. Lubin says Sharplink’s commitment to staking not only increases the integrity of Ethereum’s network, but also generates additional ETH rewards. “This is a capital allocation that will help both corporate growth and the Ethereum ecosystem,” Rubin added.
At the time of pressing, Ethereum was trading at $2,550, down 7% on Friday. Today’s dip has almost wiped out the profits ETH has seen in the past week, but has only increased by 2% over the past seven days. Meanwhile, Sharplink’s strategy has sparked volatility and debate among SBET investors. Following the company’s first ETH Treasury announcement on May 27, the stock price surged over 400%, reflecting investor enthusiasm. However, the recent S-3 SEC filing caused a sharp 73% drop in after-hours trading on Thursday as the shares plummeted from $32.53 to under $8. At the time of pressing, SBET has changed hands at just over $10 per share.
