The crypto giant listed on the Nasdaq, led by Ethereum co-founder Joe Lubin, is opening its wallet wide. SharpLink Gaming has resumed its Ether (ETH) purchases after over a month-long hiatus, injecting over $75 million into the market. This move brings the firm back into the spotlight, while most corporate treasuries are still feeling the pressure of the bear market.
A Speedy Raise for 19,271 ETH
To fund the operation, SharpLink raised $76.5 million through a direct share issuance. The entire fund was used to acquire 19,271 ETH at an average price of $3,892, as per an official statement. The company now holds 859,853 ETH, valued at around $3.5 billion, with an additional $36.4 million in cash and equivalents. A colossal war chest managed as a strategic reserve of digital assets.
A Bold Bet in a Tense Climate
However, the announcement did not boost SharpLink’s stock (SBET), remaining stable around $14.5 at closing. The share price still shows a 66% drop since July and nearly 90% since its peak in May when it formally announced its shift towards crypto assets. This stock performance illustrates a paradox: the market value of these crypto treasury companies is plummeting, while their digital asset portfolios retain considerable value. Many, like SharpLink, now have to raise funds by selling shares to continue accumulating.
A Return to the Limelight
In September, SharpLink made headlines by buying back its own shares after the stock price fell below the net value of its ETH and cash reserves. A signal to the market that the company sees itself as significantly undervalued. Their previous ETH purchase dates back to late August, acquiring 39,000 ethers at that time. Since June, the company has also generated an additional 5,671 ETH, approximately $22 million, through staking its assets.
Only time will tell if this contrarian strategy will pay off in the long run. One thing is certain: with over $3.5 billion in ETH, SharpLink now stands as one of the largest corporate holders of Ether in the world.
