SharpLink Gaming Inc., a Minneapolis-based sports marketing firm, experienced an extraordinary surge in its stock price, soaring more than 400% after unveiling a transformative $425 million private investment in public equity round aimed at adopting Ethereum as its primary treasury reserve asset. The company’s shares jumped from $7 to over $34 within days, pushing its market capitalization to approximately $23 million.
The funding round is spearheaded by Consensys Software Inc., the Ethereum-focused software company co-founded by Ethereum co-creator Joseph Lubin, who will also assume the role of SharpLink’s Chairman of the Board upon closing the deal, expected around May 29, 2025. Alongside Consensys, the investment consortium includes prominent crypto venture capital firms such as Pantera Capital, Galaxy Digital, ParaFi Capital, Electric Capital, and Ondo, signaling strong confidence from key players in the Ethereum ecosystem.
SharpLink’s strategic pivot mirrors the approach taken by MicroStrategy in Bitcoin, positioning the company as a publicly traded vehicle with significant exposure to Ethereum. While continuing its core operations in the U.S. sports betting and global iGaming marketing sectors, SharpLink plans to hold Ethereum as a treasury reserve, marking a bold expansion beyond its traditional business model.
Additional corporate moves include a 1-for-12 reverse stock split executed earlier in May to comply with Nasdaq’s minimum bid price requirements, and a recent public stock offering to raise working capital. SharpLink’s CEO expressed enthusiasm about the partnership with Consensys and the new strategic direction, emphasizing the milestone as a key step in the company’s evolution.
This development places SharpLink among a growing number of microcap companies leveraging cryptocurrency treasury strategies to attract investor interest and redefine their market narratives, with Ethereum now taking center stage in this innovative financial approach.
