SharpLink’s $463M Ethereum Bet Crashes—Stock Plummets 67% Despite Mega Crypto Move

SharpLink just made crypto history—and Wall Street couldn’t care less.

The firm dropped a jaw-dropping $463 million on Ethereum, marking one of the largest corporate crypto acquisitions ever. But instead of rallying, their stock got obliterated—tumbling 67% in a brutal reality check.

When Crypto Meets Capitalism

Even blockchain believers winced at this one. SharpLink’s moonshot Ethereum play was supposed to be a game-changer. Instead, traders treated it like a meme stock gone wrong—slamming the sell button with both fists.

The Cold Truth

Turns out, institutional investors still prefer boring old profits over shiny crypto headlines. Who knew? (Answer: everyone with a Bloomberg terminal.)

One hedge fund manager put it best: ''They bought the dip—just not the right one.'' Ouch.

ETH staking

SharpLink stated that its Ethereum-centered treasury strategy company aims to provide its shareholders with direct exposure to the digital asset while reinforcing its belief in ETH’s role in powering future technologies.

Notably, the company reported an 11.8% growth in ETH per share since it began building its treasury earlier this month. The firm has already staked over 95% of its Ethereum holdings, allowing it to contribute to the network’s security and earn additional yield.

Joseph Lubin, SharpLink chairman, said:

“By allocating significant capital to ETH and deploying it in network activities such as staking, SharpLink is both contributing to Ethereum’s long-term security and trust properties while earning additional ETH for that work.”

SharpLink has earmarked a significant portion of its recently raised $79 million to expand its Ethereum reserves further.

SharpLink stock tanks

Despite the strategic ETH accumulation, SharpLink’s stock performance has seen a sharp decline.

Google Finance data shows that the company’s stock plunged nearly 67% on June 13 and was trading around $10.87 as of press time.

The steep decline appears to stem from market fears tied to shareholder dilution. A viral post on social media alleged that nearly all participants in SharpLink’s recent private placement rushed to sell their shares following the Ethereum treasury announcement.

Addressing the concerns, Lubin clarified that the S-3 filing referenced in the viral tweet simply registers shares for potential resale, a standard procedure following PIPE (private investment in public equity) deals.

Matt Corva, a legal officer at Consensys, explained:

“Shares in public stock companies have to go through a registration process to come into existence. This is part of the market infrastructure. As part of the SBET PIPE, a bunch of new shares were sold to investors that came into existence. Those shares have to get ‘registered’ to ever make it into market.”