After a rapid breakout due to the announcement of building a treasury with Ethereum, SharpLink Gaming's (SBET) stock dropped sharply by 38% just on Monday. However, looking further, the stock has still increased by up to 1,162% within a month, indicating strong investor interest in the company's novel crypto strategy.
Who is SharpLink and why are they related to Ethereum?
#SharpLinkGaming is a company operating in the betting marketing and affiliate network space. Recently, the company unexpectedly announced a pivot to building an "Ethereum treasury" – a large-scale treasury holding ETH, similar to MicroStrategy's famous Bitcoin accumulation strategy.
On Monday, SharpLink announced that it has completed a fundraising round worth $425 million, mostly funded by fiat and ETH, led by Joseph Lubin – co-founder of Ethereum and CEO of Consensys. Mr. Lubin has also now become the chairman of the board of SharpLink.
This investment round also saw participation from several major funds in the crypto space such as Galaxy Digital, Pantera Capital, Electric Capital, Arrington Capital, and GSR.
Stocks fall sharply – Is there cause for concern?
SBET stock previously peaked at $124 last week (up from just $6 on May 23), but has fallen to $47.16, down 62% from its peak and 38% in a single day. However, this may just be a technical correction after an overheated increase.
Notably, SharpLink will become the largest public company holding $ETH in the world, surpassing many other entities accumulating Bitcoin or Solana such as DeFi Dev Corp or Trump Media & Tech Group.
ETH – an asset being "rediscovered"?
Although previously downplayed due to underperformance compared to Bitcoin and Solana, ETH is gradually regaining attention after the Pectra network upgrade in May. According to CoinGecko, ETH is the strongest coin in the top 10 over the past week, currently at $2,532, down only slightly by 0.7%.
Arthur Hayes (former CEO of BitMEX) even predicts that ETH could reach $4,000–$5,000 by 2025, while analytics firm Bernstein emphasizes that ETH accounts for over 51% of the total stablecoins in the market, a very strong fundamental factor.
Conclusion:
Although SharpLink's stock is experiencing a strong correction, the pivot to ETH is not a short-term decision. With its new position and support from major names in the crypto industry, SharpLink could be a noteworthy player in the wave of institutionalization of digital assets.
Warning: The cryptocurrency market is highly volatile and not suitable for everyone. Please be cautious when investing. #anhbacong