Minnesota-based SharpLink Gaming has made waves after purchasing a massive 176,270 ETH—valued at roughly $463 million—positioning the company as the second-largest known Ethereum holder globally, behind only the Ethereum Foundation.
The acquisition, announced Friday, signals a major shift in how public companies are approaching digital assets. Rather than treating Ethereum as a speculative investment, SharpLink is integrating it as a strategic treasury reserve. Blockchain analytics platform Arkham confirms that only the Ethereum Foundation holds more ETH, with an estimated 214,129 ETH worth over $540 million.
SharpLink CEO Rob Phythian described the purchase as both a technological milestone and a long-term commitment to digital infrastructure. “This is a landmark moment for SharpLink and for public company adoption of digital assets,” he said. Phythian praised Ethereum’s unique strengths—its programmability, staking yields, and foundational role in decentralized applications—as critical components of the future of digital commerce.
This treasury play aligns with SharpLink’s pivot into Web3 and may signal a new era for public companies shifting away from fiat-based reserves toward blockchain-native assets.
Backed by Consensys and Web3 Giants, SharpLink Doubles Down
SharpLink’s Ethereum accumulation was enabled by a high-profile $425 million private placement, led by Consensys and supported by several top crypto investment firms including ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, and Ondo Finance.
The funding round, finalized on June 2, supports SharpLink’s vision of building the world’s largest corporate ETH treasury. At the time, the company’s market cap stood at just $34.8 million—highlighting the boldness of its crypto-first transformation strategy.
Adding fuel to its treasury drive, SharpLink raised an additional $79 million between May 30 and June 12 through its $1 billion ATM equity program. According to the company, these funds will be deployed to purchase even more Ethereum, reinforcing its long-term strategy of ETH as both a financial reserve and a growth asset.
Share Resale Filing and ETH Drop Trigger Stock Crash
Despite the bullish pivot, SharpLink’s strategy faced turbulence on June 12 when its stock plunged nearly 70% after a regulatory filing revealed plans for the resale of 68 million common shares. The filing sparked fears of dilution among investors and sent shares tumbling.
The stock decline also coincided with a sharp drop in Ethereum’s price, which fell more than 8% in 24 hours to $2,544. While SharpLink remains committed to its ETH-centric strategy, the combined effect of market volatility and regulatory disclosure has introduced short-term challenges.
Historically focused on affiliate marketing for sportsbooks and online casinos, SharpLink’s transformation into a Web3-centric firm is one of the boldest treasury shifts by a publicly traded company. Whether its bet on Ethereum pays off remains to be seen, but the move has already drawn attention across both Wall Street and crypto circles.
Quick Facts
- SharpLink purchased 176,270 ETH (~$463M), becoming the second-largest known Ethereum holder.
- The Ethereum Foundation remains the top holder with ~214,129 ETH.
- SharpLink raised $425M in private placement led by Consensys and added $79M through equity sales.
- Shares fell ~70% following SEC disclosure of 68M potential share resale.
- Ethereum’s price also dropped over 8% on June 12 to $2,544.
