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3.70%SharpLink Gaming Soars 400% as Joseph Lubin's Consensys Leads $425M Funding for ETH Treasury Strategy
The Ethereum co-founder will also be joining the SharpLink board as its chairman.
What to know:
- Shares of SharpLink (SBET) surged over 400% after announcing plans and major financing to adopt ether (ETH) as its treasury reserve asset.
- Ethereum co-founder Joseph Lubin will join SharpLink as board chairman, while his firm Consensys leads the $425 million PIPE round.
- The Minneapolis-based sports marketing company is joining others attempting to mimic MicroStrategy's bitcoin strategy.
Shares of sports marketing company SharpLink (SBET) rose 412% on Tuesday after it announced plans to create an Ethereum
treasury reserve strategy with involvement from the blockchain’s own co-founder, Joseph Lubin.
STORY CONTINUES BELOW
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The Minneapolis-based firm, founded in 1995, is currently trading at $34.45, up from $7 Friday, with a market cap now of $23 million.
The company is raising roughly $425 million though a private investment in public equity (PIPE) offering. The proceeds will be used to buy ether, which will then serve as the primary treasury reserve asset.
Ethereum software developer Consensys, which was also co-founded by Lubin, was the lead investor with further participation by Pantera Capital, Galaxy Digital, and Ondo, among smaller names.
The offering is expected to close on May 29th, according to the release. Lubin will become chairman of the board of directors upon the closing.
SharpLink joins an increasing number of microcap companies trying to mimic the success of Strategy (MSTR), the first company to adopt a bitcoin
treasury strategy, resulting in an over 3,000% increase of its share price over the past five years.Along those lines, Trump Media & Technology Group (DJT) Tuesday morning announced a $2.5 billion capital raise to begin a bitcoin treasury strategy.
Helene Braun
Helene is a New York-based markets reporter at CoinDesk, covering the latest news from Wall Street, the rise of the spot bitcoin exchange-traded funds and updates on crypto markets. She is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.
