- SharpLink Gaming invested $30 million in Ethereum.
- This boosted its total holdings to over 188,000 ETH, valued at approximately $457.4 million.
- In May, SharpLink adopted Ethereum as its primary treasury reserve asset, raising $425 million.
Shares of sports betting firm SharpLink Gaming have reportedly surged over 7% on Tuesday after the company disclosed a new $30 million investment in Ethereum (ETH). The latest purchase has boosted its total holdings to over 188,000 ETH.
The company said it purchased 12,207 ETH units at an average price of $2,513 per unit during the week ending June 20.
SharpLink’s total Ethereum holdings are now valued at approximately $457.4 million.According to the company, all of its ETH holdings has been staked, generating 120 ETH worth around $293,000.
To finance the purchase, SharpLink sold 2.54 million shares, raising $27.7 million. The majority of the proceeds were used to increase its ETH position.
Chairman of the board Joseph Lubin, who is also a co-founder of Ethereum, said in the statement that the move would “create long-term value for our stockholders.”
Lubin was appointed chairman in May when the company raised $425 million through a private investment in public equity (PIPE) deal to adopt Ethereum as its primary treasury reserve asset.
The May adoption of Ethereum as a treasury reserve asset led to a dramatic spike in SharpLink’s stock, which soared over 1,000% in a single day, with trading volumes increasing more than 7,000%. However, its drastic shift also introduced significant volatility.
While investors have responded positively to SharpLink’s crypto-forward strategy, analysts note that the move introduces added market volatility, especially given how crypto in general has been reacting to global conflict.
The long-term outcome of using Ethereum as a treasury reserve asset remains to be seen.