SharpLink Gaming announced Tuesday a groundbreaking $425 million private placement deal to select Ethereum as its main treasury reserve asset.
The Minneapolis-based sports marketing company’s bold pivot into cryptocurrency has captured the attention of Wall Street. The announcement represents a dramatic turnaround for SharpLink, which recently faced Nasdaq compliance issues.
Additionally, Ethereum co-founder Joseph Lubin is set to join as board chairman upon the completion of the deal.
Recently, the company executed a 1-for-12 reverse stock split on May 6. The aim was to boost its share price above the $1.00 minimum bid threshold required for continued listing. The massive capital infusion signals to investors that SharpLink is committed to maintaining its presence on the public market while pursuing aggressive growth strategies.
Top Crypto VCs Back Ethereum Treasury Move
In the investment round structured as a Private Investment in Public Equity (PIPE), 69.1 million shares will be sold at $6.15 each, while insider shares will be priced at $6.72 each. Lubin, along with prominent cryptocurrency investors such as Pantera Capital, Galaxy Digital, Electric Capital, ParaFi, and Arrington Capital, has co-founded ConsenSys Software Inc.. This Ethereum infrastructure company leads the investment consortium.
The price of SharpLink’s stock skyrocketed from less than $7 on Friday to $34.45 on Tuesday. This 412% increase raised the company’s market value to $23 million.
The MicroStrategy Influence
SharpLink Gaming is one of many companies trying to imitate MicroStrategy‘s profitable Bitcoin treasury model. However, this focuses on Ethereum. Along with financing for operating capital and other corporate needs, its primary goal with the funds is to acquire Ethereum as its main treasury reserve asset.
As the Ethereum price has performed well in 2025, with investors increasingly betting on its role in decentralized finance and smart contracts, this strategic change comes at an especially favorable time. This shift positions SharpLink to lead the way in fusing conventional business practices with innovative cryptocurrency.
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