SharpLink Gaming Plans to Buy $1B in Ether, Drawing Comparisons to Michael Saylor
U.S.-based sports betting platform SharpLink Gaming has filed with the Securities and Exchange Commission (SEC) to offer up to $1 billion in common stock, aiming to build a substantial Ether (ETH) treasury.
“We intend to use substantially all of the proceeds from this offering to acquire Ether, the native cryptocurrency of the Ethereum blockchain commonly referred to as ‘ETH,’” the company stated in its May 30 filing.
Ethereum Treasury Strategy and Board Shakeup
The filing follows SharpLink’s May 27 announcement of an Ethereum-based corporate treasury initiative. In a notable move, the company also appointed Ethereum co-founder Joseph Lubin as chairman of its board.
The market responded swiftly — SharpLink’s stock surged 400% during trading on May 27 following the news.
Additional Uses and Risk Factors
While most of the proceeds are earmarked for Ether purchases, the company noted that funds may also support:
Working capital
Operating expenses
General corporate purposes
Affiliate marketing operations
The filing also disclosed a variety of risks associated with the Ether investment strategy:
Regulatory uncertainty, including the risk that Ether could be classified as a security, triggering additional compliance requirements.
The potential impact of central bank digital currencies (CBDCs), which could diminish demand for private cryptocurrencies like ETH.
Community Reactions: “Ethereum’s Michael Saylor”
The aggressive ETH acquisition plan has sparked comparisons between SharpLink and Michael Saylor, executive chairman of MicroStrategy, who is known for his high-profile Bitcoin purchases. MicroStrategy currently holds 580,250 BTC, worth approximately $60.22 billion, according to Saylor Tracker.
Some in the crypto community are dubbing SharpLink “Ethereum’s own Saylor” for its bold strategy to accumulate ETH as a corporate asset.