SharpLink Gaming, a Nasdaq-based marketing partner to casinos and sportsbooks, is gearing up to go public in a $425 million private placement deal, according to a company announcement .
The company will use the proceeds to shift heavily into digital asset management, with Ethereum (ETH) as its principal treasury asset.
The transaction — a PIPE, or private investment in public equity — will consist of a sale of over 69 million shares at $6.15 per share, or $6.72 for certain company insiders. The deal, subject to customary conditions, is expected to close on or about May 29.
The lead investor is Consensys Software Inc., a blockchain company founded by Ethereum co-founder Joseph Lubin. The round included a who's who of crypto-native venture firms, such as Galaxy Digital, Pantera Capital, ParaFi, and Electric Capital, alongside infrastructure-focused investors like Ondo and GSR.
The intended use of the proceeds will be to purchase Ether, the native crypto of the Ethereum network. This represents a drastic shift from how SharpLink has positioned itself in the past as a gaming technology provider.
Once that happens, Ethereum will become the company's reserve asset, a similar approach to MicroStrategy's use of Bitcoin .
Rob Phythian, the company's CEO, and Robert DeLucia, the company's CFO, contributed to the round, indicating internal support for the change. Lubin, who will be a member of SharpLink's board, framed the move as a means of connecting public markets to the Ethereum ecosystem.
The offering will also be made pursuant to an exemption from registration rules under the Securities Act and includes a provision for registration of the resale of the securities sold under a separate agreement with the investors.
At press time, Sharplink Gaming's stock price has increased by 557.74% in a single day, following the announcement.
Gaming stock surges 500% after new treasury plans first appeared on TheStreet on May 27, 2025