SharpLink Gaming (SBET), a publicly traded marketing company, has announced a $425 million Ethereum (ETH) reserve strategy.
Shares of SharpLink Gaming are up a whopping 420% in premarket trading following the announcement.
SharpLink Gaming has agreed to raise the aforementioned sum by selling 61.1 million shares to select investors that include Ethereum development studio Consensys, Pantera Capital, Galaxy Digital and Electric Capital. The deal is expected to close later this month.
Ryan Sean Adams of Bankless Ventures has drawn parallels between SharpLink Gaming and Michael Saylor's Strategy (MicroStrategy). He is convinced that others will follow suit.
The same sentiment has been echoed by Bitwise Invest President Teddy Fusaro.
Rob Phythian, founder and CEO of SharpLink, is possibly positioning himself as Ethereum's Saylor by pivoting his company into Ethereum. Phythian has described the deal as a "significant milestone" for his company's journey.
In the future, SharpLink could potentially emerge as a proxy play for the leading alternative cryptocurrency.
The price of Ethereum (ETH) is up by 4% following the announcement.
