Shares of SharpLink Gaming surged over 7% following the announcement of a new investment in Ethereum. The company attracted investor attention and bolstered its position in the crypto market.
SharpLink Gaming Stock Growth
On June 24, shares of SharpLink Gaming (NASDAQ: SBET) jumped over 7%, closing at $9.66 after announcing a $30 million investment in Ethereum. The stock saw an additional 1.14% bump in after-hours trading, ending the session at $9.77.
Ethereum Investments and Financial Strategies
The company revealed that it had acquired 12,207 Ether (ETH) during the week ending June 20, at an average purchase price of $2,513 per token. This brings SharpLink’s total Ethereum holdings to over 188,000 ETH, currently valued at approximately $457.4 million. To finance the latest ETH acquisition, SharpLink sold 2.54 million shares, raising $27.7 million, the majority of which was allocated directly to Ethereum purchases. As part of a strategy to generate passive income, the firm has now staked its entire ETH portfolio, yielding 120 ETH worth around $293,000 in rewards so far.
Ethereum Market and Crypto Demand
Despite a challenging Q1—marked by a 24% year-over-year revenue decline and a sharp 110% drop in net profit margin—SharpLink's pivot to crypto appears to be resonating with investors amid rising institutional demand for Ether. Demand has seen an uptick despite geopolitical tensions. On June 23, a large investor initiated a bold $101 million ETH long position with 25x leverage, while another whale scooped up $39 million worth of ETH, pushing their holdings above $300 million. Data also shows that over 35 million ETH tokens, representing 28% of the total supply, are now locked in staking contracts, highlighting growing confidence in Ethereum’s long-term value as a yield-generating asset.
SharpLink Gaming is demonstrating a confident move towards increasing its crypto assets and attracting investor interest. The strategy of accumulating ETH may lead to long-term benefits for shareholders.
