SharpLink Gaming’s Wild Ride: Ethereum Treasury Hype Crashes with SEC Filing Mix-Up 👀
SharpLink Gaming, a Minneapolis-based online gambling marketer, saw its stock tank over 70% in after-hours trading on Thursday after an SEC filing caused confusion. The company, which had recently soared to nearly $80 a share after raising $425 million to build an Ethereum treasury, filed an S-3 prospectus to potentially sell securities. A section of the filing seemed to suggest that investors from the PIPE (Private Investment in Public Equity) deal had dumped their shares, spooking the market. Ethereum co-founder and SharpLink Chairman Joseph Lubin clarified on X that the filing was just a standard procedure, not proof of actual sales, and that neither he nor his company, Consensys, sold any shares. SharpLink’s move to create an Ethereum treasury is part of a broader trend of public companies diving into crypto, inspired by MicroStrategy’s massive Bitcoin treasury success.
This feels like a classic case of market overreaction fueled by misunderstanding. SharpLink’s stock was riding high on Ethereum hype, but the SEC filing’s fine print clearly spooked investors who didn’t dig deeper. Lubin’s explanation makes sense—S-3 filings are routine for companies post-PIPE, and assuming a mass sell-off was a leap. That said, the 70% plunge shows how jittery crypto-linked stocks can be, especially when regulatory filings are involved. SharpLink’s Ethereum treasury idea is bold, but they’ll need to communicate better to avoid these kinds of meltdowns. It’s a bumpy road, but if they can stabilize and execute, this could still be an interesting play in the crypto treasury trend.
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