SharpLink Bets Big: $425M Ethereum Treasury Move Backed by Consensys Founder Lubin

In a high-stakes crypto power play, SharpLink just parked $425 million worth of Ethereum into its treasury—with Ethereum co-founder Joseph Lubin reportedly advising the move. The blockchain firm’s vault now rivals some mid-sized banks’ reserves.

Why the whale-sized allocation? Insiders hint at long-term bullishness on ETH’s utility—or maybe just hedging against traditional finance’s slow-motion collapse. Either way, it’s a stark contrast to CEOs hoarding cash while complaining about ‘uncertainty.’

One thing’s clear: When Lubin talks, crypto treasuries listen. Now we wait to see if this gamble ages like fine wine or meme-stock portfolios.

Strategy playbook for Ethereum

Former Ethereum core developer Eric Conner called the plan an “ETH edition” of Strategy’s Bitcoin (BTC) strategy in aon social media.

He outlined a flywheel in which SharpLink raises cash below net asset value, buys and stakes ETH, and then sells new shares if the stock trades above the value of its ETH per share.

Conner estimated that the approach WOULD move the amount in ETH into long-term staking and create a public-market proxy for investors that cannot hold tokens directly.

He added watch points for traders, such as the premium versus ETH’s net asset value, potential follow-on offerings if a premium emerges, and whether other micro-cap companies replicate the model. 

Conner framed supply compression and a simple equity wrapper as “bullish” for Ether’s acceptance on corporate balance sheets.

Based on CryptoSlate data, Ethereum was trading at $2,564.72 as of press time, up 4.5% on the day and outpacing the average gains of other large-cap altcoins.