Anushka Basu
2 min read
SharpLink Gaming, a Nasdaq-based marketing partner to casinos and sportsbooks, is gearing up to go public in a $425 million private placement deal, according to a company announcement.
The company will use the proceeds to shift heavily into digital asset management, with Ethereum (ETH) as its principal treasury asset.
The transaction — a PIPE, or private investment in public equity — will consist of a sale of over 69 million shares at $6.15 per share, or $6.72 for certain company insiders. The deal, subject to customary conditions, is expected to close on or about May 29.
The lead investor is Consensys Software Inc., a blockchain company founded by Ethereum co-founder Joseph Lubin. The round included a who's who of crypto-native venture firms, such as Galaxy Digital, Pantera Capital, ParaFi, and Electric Capital, alongside infrastructure-focused investors like Ondo and GSR.
The intended use of the proceeds will be to purchase Ether, the native crypto of the Ethereum network. This represents a drastic shift from how SharpLink has positioned itself in the past as a gaming technology provider.
Once that happens, Ethereum will become the company's reserve asset, a similar approach to MicroStrategy's use of Bitcoin.
Rob Phythian, the company's CEO, and Robert DeLucia, the company's CFO, contributed to the round, indicating internal support for the change. Lubin, who will be a member of SharpLink's board, framed the move as a means of connecting public markets to the Ethereum ecosystem.
The offering will also be made pursuant to an exemption from registration rules under the Securities Act and includes a provision for registration of the resale of the securities sold under a separate agreement with the investors.
At press time, Sharplink Gaming's stock price has increased by 557.74% in a single day, following the announcement.
Gaming stock surges 500% after new treasury plans first appeared on TheStreet on May 27, 2025
