SharpLink Gaming (SBET) shares plunged 20% on Friday after the company filed an amendment to increase its stock offering size from $1 billion to $6 billion in a bid to expand its Ethereum reserves. While the company's ETH accumulation strategy had previously driven strong stock gains, investors are now concerned about massive share dilution.

SharpLink currently holds around $1.3 billion worth of ETH after purchasing hundreds of millions this week alone. However, news of an additional $5 billion in potential stock issuance has triggered a sharp market sell-off.

This highlights that, although the strategy of accumulating digital assets is gaining popularity among companies, investors remain highly sensitive to dilution risks and increased stock supply.