- Sharplink increased its share offering from $1B to $6B to buy ETH
- It now holds over 280,000 ETH, surpassing the Ethereum Foundation
- The company hinted at targeting 1 million ETH for its treasury
Joseph Lubin-backed Sharplink Gaming has announced a dramatic expansion of its share offering, increasing the total authorization from $1 billion to $6 billion. This aggressive move is part of a larger strategy to accumulate Ethereum and solidify its position as a major corporate holder of the asset.
According to the company’s new SEC filing released Thursday, Sharplink plans to use most of the proceeds from the offering to acquire ETH. The remaining funds will be allocated to working capital, corporate operations, and affiliate marketing efforts.
In just the past nine days, Sharplink has added $515 million worth of Ethereum to its treasury. This brings its total ETH holdings to over 280,000, with 99.7% of that amount staked to earn network rewards. If the company proceeds to use the full $6 billion to buy more ETH at current prices, it could end up holding nearly 1.38% of Ethereum’s total circulating supply.
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1 million ETH in treasury
In a recent post on X, Sharplink hinted that its long-term goal is to hold as much as 1 million ETH in its treasury. At today’s prices, that would require more than $3.6 billion in additional accumulation.
Sharplink is currently the largest corporate holder of Ethereum, surpassing the Ethereum Foundation. Since June 2, it has generated over 415 ETH in staking rewards, valued at $1.49 million.
On Monday, the company purchased another 32,892 ETH worth $115 million. That brought its nine-day total to $515 million in ETH buys, according to on-chain data provider Lookonchain. You can follow Ethereum’s current market cap, circulating supply, and real-time price through trusted sources like Messari’s Ethereum page.
Galaxy Research commented that Sharplink’s accumulation may act as a positive catalyst for Ethereum’s ecosystem. The fund’s size, commitment to staking, and long-term horizon reflect growing institutional confidence in ETH as a treasury asset.Despite this bullish activity in crypto markets, Sharplink’s stock (SBET) ended Thursday’s session at $36.40, down 2.62%. The stock declined further in after-hours trading by 4.95%, closing at $34.60.
While Sharplink is still up 350% year-to-date, it remains 54% below its May 29 high of $79.21. Analysts attribute the volatility to uncertainty around its crypto-heavy positioning and ongoing revenue challenges. In Q1 2024, Sharplink reported a 24% year-over-year drop in revenue. Its net profit margin also fell by 110% during the same period, raising questions about short-term sustainability.
Sharplink is pioneering a new corporate treasury model based on tokenized reserves. By focusing on ETH accumulation, staking, and liquidity, the company is aligning itself with a decentralized financial future. Its next quarterly earnings report is expected on August 13, and the market will be watching to see whether this bold bet on Ethereum translates to sustainable results.
