Sharplink Makes $462M ETH Power Move – Now Largest Public Holder Despite Stock Plunge
Wall Street meets blockchain in a high-stakes gamble. Sharplink just dropped $462 million on Ethereum – instantly becoming the biggest public holder of ETH while their traditional investors headed for the exits.
The irony? A company betting big on decentralized finance gets punished by centralized markets. Shares tanked 12% post-announcement – because nothing scares institutional investors quite like conviction.
Meanwhile in crypto-land: ETH whales are cheering. This institutional-sized buy signals growing mainstream acceptance, even if Sharplink''s shareholders haven''t read the memo.
One thing''s clear – while traditional finance plays checkers, crypto players are stacking the ETH board. Will this move look reckless or prescient when the next bull run hits? Place your bets.
Sharplink’s ETH Funding Strategy
To fund the purchase, Sharplink raised $425 million through a private placement deal and another $79 million via an at-the-market (ATM) equity offering. The company used most of these proceeds to acquire ETH, highlighting its strong commitment to building a substantial crypto reserve.
As a result, Sharplink reported an 11.9% increase in ETH per share since June 2. It has also deployed over 95% of its ETH into staking and liquid staking protocols, contributing to Ethereum’s network security while generating passive yield.
Stock Dips Despite Ethereum Bet
Despite Sharplink’s bullish ETH announcement, its stock (SBET) experienced sharp volatility. According to Google Finance, the stock dropped 12.25% on Thursday to close at $32.50, then plunged to as low as $8 in after-hours trading.
However, by Friday, it had recovered slightly to $11.05, still down about 66% over 24 hours. Nonetheless, the stock remains up nearly 230% over the past month and 37% year-to-date.
Meanwhile, the steep drop came after Sharplink filed an S-3 registration with the U.S. Securities and Exchange Commission. The filing outlined a possible resale of 58.7 million shares issued during a previous private investment in public equity (PIPE) offering, involving more than 100 investors.
In turn, this triggered fears of dilution, prompting a wave of selling. In response, Sharplink Chairman Joseph Lubin clarified on X that the filing doesn’t reflect any current sales. He explained that it only registers shares in case past investors choose to sell later.
