SharpLink Gaming sees its shares skyrocket by over 400% as it adopts an Ethereum treasury reserve strategy backed by a $425M funding round led by Consensys, co-founded by Ethereum co-founder Joseph Lubin.
SharpLink Gaming, a Minneapolis-based sports marketing company, has seen its shares skyrocket by over 400% after announcing plans to create an Ethereum treasury reserve strategy. The move is backed by a $425 million private investment in public equity (PIPE) offering led by Consensys, co-founded by Joseph Lubin, one of the Ethereum co-founders.
SharpLink Gaming is a cloud-based esports platform that connects gamers with gaming communities, tournaments, and events.
The platform uses artificial intelligence to match players based on their skill level, game preferences, and other factors.
Founded in 2019, SharpLink Gaming aims to revolutionize the way 'gamers interact, compete, and engage with each other'.
With a focus on user experience and community building, SharpLink Gaming offers a unique and innovative approach to the esports industry.
SharpLink’s decision to adopt ether as its primary treasury reserve asset is part of an effort to diversify its portfolio and reduce risk. The company plans to use the $425 million funding round to buy ether, which will serve as the foundation for its new strategy. This move follows in the footsteps of other companies, including MicroStrategy, which adopted a bitcoin treasury strategy and saw its share price increase by over 3,000% in the past five years.
The Ethereum treasury reserve is a fund established to support the development and growth of the Ethereum ecosystem.
It was created in 2021 through a proposal by the Ethereum Foundation, allowing users to contribute and participate in decision-making processes.
The reserve has been allocated $15 million from the Ethereum protocol's EIP-1559 upgrade.
This fund aims to promote community-driven initiatives, research, and development, ensuring the long-term sustainability of the 'Ethereum network.'
Consensys, co-founded by Joseph Lubin, played a crucial role in SharpLink’s funding round. The company provided $150 million of the PIPE financing, with further participation from Pantera Capital, Galaxy Digital, and Ondo. As part of the deal, Lubin will join SharpLink’s board as its chairman, bringing his expertise in blockchain technology to the company.
ConsenSys is a blockchain technology company that provides software solutions for decentralized applications (dApps).
Founded in 2014, the company has developed a range of products and services, including MetaMask, a popular Ethereum wallet.
ConsenSys focuses on building scalable, secure, and user-friendly blockchain infrastructure for various industries, such as finance, healthcare, and gaming.
SharpLink’s move is part of a growing trend among microcap companies attempting to adopt treasury strategies similar to those seen in larger companies like MicroStrategy and Trump Media & Technology Group. As the crypto market continues to evolve, it remains to be seen whether these strategies will prove successful for smaller companies like SharpLink.
SharpLink’s shares are currently trading at $34.45, with a market capitalization of $23 million. The company’s decision to adopt an ether treasury reserve strategy has sparked interest among investors, and its funding round is expected to close on May 29th.
