SharpLink Gaming, backed by Joseph Lubin, has significantly increased the amount of shares it intends to sell to acquire a larger stake in Ether. Over the last nine days, the company has added $515 million in ETH to its treasury.
Increase in Share Offering and Ether Purchase
In a prospectus supplement, SharpLink Gaming announced that it has increased the number of shares it can sell by an additional $5 billion, up from the initial billion. The majority of the proceeds from this offering will be directed towards acquiring Ether. The company plans to use the funds for working capital needs, general corporate purposes, and operating expenses.
Company's Strategy for Holding ETH
SharpLink has already become the largest corporate holder of Ether. Hinting at its plans, the company stated it intends to hold 1 million ETH in its treasury. Currently, the company has more than 280,000 ETH in its reserves, with approximately 99.7% of the asset being staked. From June to mid-July, SharpLink generated 415 ETH as staking rewards, equivalent to $1.49 million.
Stock Performance of SharpLink Gaming
SharpLink Gaming's (SBET) stock ended Thursday's trading session at $36.40, down 2.62%. After-hours trading saw a further decline of 4.95%, finishing at $34.60. While SBET is up 350% year-to-date, it has dropped 54% from its high of $79.21 on May 29. The company's Q1 financial results showed a 24% decline in revenue year-over-year.
SharpLink Gaming continues to strengthen its position in the Ether market by utilizing new funds for acquisitions and asset holding strategies. However, despite significant increases in stock value, the company faces financial challenges.
