Sharplink Gaming has announced plans to recruit shelves that could raise up to $1 billion in filings with the US Securities and Exchange Commission (SEC).
The company plans to use a significant portion of this massive funding push to buy Ethereum (ETH).
Shelf offering is a financing method that allows a company to gradually provide securities registered with the SEC to the market, not all, to raise capital. This method allows businesses to raise funds more flexible over time.
The total number of shares that Sharplink Gaming can issue under the provision of this shelf is over 72 million. If sold fully, we can generate revenues of up to $1 billion, assuming that the shares are traded at the current market price of 79.21.
Stocks are sold in the US at specific intervals, depending on market conditions, using a “market offering” method. In such sales, the stock is provided to direct investors through sales representatives.
The company announced that it will use the majority of its funds to purchase Ethereum (ETH), with the rest being allocated to working capital, general corporate expenses, operational expenses and affiliate marketing efforts.
Sharplink Gaming, which purchased $435 million worth of Ethereum last week, has seen a 2,700% increase following these developments. The company’s market value has also increased by 11 times, attracting attention.
*This is not investment advice.