Sharplink Gaming, one of the largest publicly traded Ethereum (ETH) treasury companies, announced today that it has raised $76.5 million in a direct stock offering at an above-market price. A portion of the proceeds may be used to purchase further ETH.
SharpLink raises $76.5 million to buy more Ethereum
According to an announcement made earlier today, SharpLink Gaming has entered into a securities purchase agreement with an unknown institutional investor for the purchase and sale of 4.5 million shares of its common stock.
Notably, the Minneapolis-based company said it sold the stock for $17 per share, a 12% premium over the market rate of $15.50 recorded at the close of trading on October 15th. Additionally, the price is at a premium compared to the net asset value (NAV) of the company’s current holdings of 840,124 ETH.
The offering is expected to close on October 17, subject to the satisfaction of customary closing conditions. Commenting on this development, SharpLink co-CEO Joseph Chalom said:
This is a strategically structured and innovative stock sale transaction that benefits shareholders and reflects the institution’s strong confidence in SharpLink and the company’s long-term vision. By raising shares at a significant premium to both market price and NAV, we can continue to accumulate ETH and increase ETH per share for investors.
He added that Ethereum’s adoption continues to increase among both retail and institutional investors across various sectors such as stablecoins, decentralized finance (DeFi), and tokenized assets.
SharpLink stock has fallen slightly following today’s announcement, trading at $15.07 at the time of writing. However, the stock price has increased by 445% in the past six months, mainly due to the rise in ETH price.
As mentioned earlier, SharpLink currently ranks second among publicly traded companies by the amount of ETH held in their treasury. bitmine technologies Continue According to Coingecko data, it holds over 3 million ETH on its balance sheet, leading the industry.
Is crypto treasury still relevant?
The practice of companies developing crypto asset strategies has become increasingly popular over the past few years. The pace has accelerated following the victory of virtual currency advocate Donald Trump in the US presidential election in November 2024.
This trend is not limited to major digital assets such as Bitcoin (BTC) and Ethereum; companies are also exploring crypto asset strategies that focus on other altcoins, such as: Solana (Sun), Avalanche (AVAX)and Dogecoin (DOGE).
That said, there are some signs that investors are questioning the benefits that a crypto-focused financial strategy can have on a company’s finances. For example, recently, Metaplanet’s valuation has fell It is less than the total BTC value held on the balance sheet.
Similarly, the stock price of Michael Saylor Strategy, the world’s largest listed company in terms of BTC holdings, poor performance For the past few months. At the time of writing, ETH is trading at $3,921, down 1.7% in the past 24 hours.
Featured image from Unsplash.com, graph from Yahoo! Finance, Coingecko, TradingView.com
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