SharpLink, an American online gaming company, updated its prospectus to the SEC, increasing the initial $1 billion proposed on May 30 to $6 billion, in preparation for a massive purchase of Ethereum. However, the move to significantly dilute the equity has somewhat shaken investor confidence, and SBET's stock price has rebounded more than 167% from its low of $10 a month ago. SBET closed down 2.6% to $36.4 yesterday.
SharpLink has 280,706 ETH
SharpLink, an American online gaming company, announced at the end of May that it would enter the Ethereum (ETH) strategic reserve, initially raising $425 million in private placement funds, led by Consensys Software Inc., with participation from well-known crypto venture capital firms such as ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital. The move is to establish an Ethereum strategic reserve asset, which will be used to purchase and hold ETH or assets related to the Ethereum ecosystem.
SharpLink currently owns 280,706 ETH, surpassing the Ethereum Foundation. However, due to Bitmine’s rapid catch-up yesterday, it temporarily fell to second place.
Source: strategythreserve added 5 billion Mg quota to buy ETH, SBET rose by 167% in one month
SharpLink Gaming previously submitted an S-3 document, expecting to raise $1 billion through one or more issuances of common stock, preferred stock, warrants, and bonds. Now it has applied for an additional $5 billion, increasing the amount of funds raised to $6 billion, in preparation for a large purchase of Ethereum.
As of July 16, 2025, the number of shares outstanding is 99,951,942 shares. Based on yesterday's closing price of $36.4, the mNAV has reached 3.7. The fundraising is expected to issue another 133,761,370 shares, bringing the total share capital to 233,713,312 shares.
The move to significantly dilute equity has somewhat shaken investor confidence. Coupled with the fact that SBET's share price has rebounded more than 167% from its low of US$10 a month ago, SBET closed down 2.6% to US$36.4 yesterday.
This article SharpLink increases capital by 5 billion magnesium to buy ETH, significantly diluting equity SBET closed down 2% first appeared in Chain News ABMedia.
