SharpLink Reaffirms No Shareholder Approval Needed for ATM Program - Here’s Why It Matters

SharpLink just dropped a compliance bombshell—their ATM program operates without shareholder votes. That's right, zero approval required.

The Regulatory Bypass

While traditional finance still drowns in paperwork, SharpLink's structure sidesteps the usual shareholder approval requirements. Their setup meets all necessary regulatory thresholds automatically—no boardroom battles, no proxy fights.

Market Mechanics Unleashed

The company can now raise capital on-demand through market transactions. They issue shares directly into the market flow, tapping liquidity without the typical bureaucratic delays that plague conventional offerings.

Because nothing says 'efficient markets' like cutting investors out of the decision-making process—after all, who needs consensus when you've got loopholes?

TLDR

• SharpLink confirms no shareholder approval needed for executing ATM program under Nasdaq rules.

• SharpLink ensures transparency and compliance in transactions without violating shareholder interests.

• Reports suggesting DAT companies need shareholder approval may not apply to SharpLink.

• SharpLink maintains commitment to only raise capital when it benefits shareholders.

SharpLink Gaming (SBET) has issued a statement reaffirming that it fully complies with Nasdaq regulations. The company clarified that it does not need shareholder approval to execute its at-the-market (ATM) program to fund the purchase of ethereum (ETH) tokens. This update addresses recent media reports suggesting that some Digital Asset Technology (DAT) companies may require shareholder approval before issuing new shares for crypto acquisitions.

According to SharpLink, such reports might pertain to newer DAT companies that are not yet in compliance with existing Nasdaq rules. However, the company emphasized that this does not apply to SharpLink. The gaming company reiterated its commitment to transparency and compliance with all Nasdaq requirements and industry best practices.

No Need for Shareholder Approval in SharpLink’s Strategy

SharpLink’s CEO reaffirmed that the company’s strategy remains unchanged and that it will only raise capital when it is in the best interest of shareholders.

The company has never used its ATM program when trading below net asset value (NAV). SharpLink’s approach ensures that any capital raised WOULD be accretive to its shareholders, thus avoiding potential dilution.

Despite the media reports, SharpLink remains committed to its strategy of transparency and compliance. “We will continue to act in the best interest of our shareholders,” the company stated, addressing concerns from the market.

Media Confusion and the Role of New DAT Companies

Recent media coverage has sparked confusion about the need for shareholder approval in certain DAT companies.

While SharpLink has confirmed its ability to utilize the ATM program without additional approval, it acknowledged that some newer DATs may not be able to meet Nasdaq’s stringent requirements. This difference in regulatory standing could make them subject to heightened scrutiny.

SharpLink’s clarification highlights that its status as a fully compliant company is not in question. Unlike some other companies, SharpLink has maintained a rigorous commitment to Nasdaq’s standards and transparency. The company noted that it has always been mindful of how any capital raise could affect its shareholders and is dedicated to ensuring that any such decisions are beneficial.

Transparency and Investor Confidence

SharpLink’s emphasis on compliance with Nasdaq regulations and its clear communication with investors have reassured stakeholders about the company’s future direction. The decision to not execute the ATM program below NAV ensures that the company’s stock will not be diluted unnecessarily.

The company’s proactive approach in addressing these concerns is meant to maintain investor confidence and safeguard shareholder interests.

As SharpLink continues to explore opportunities for Ethereum purchases and other digital asset investments, its commitment to transparency and responsible financial practices will remain a core component of its strategy. This update should ease concerns from investors and reinforce the company’s adherence to best practices in both the gaming and crypto sectors.