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Ethereum Treasury Firm SharpLink Gaming Plunges 70% – But There May Be a Twist
The company earlier raised $450 million in a private placement round from investors to pursue an ETH reserve strategy.
Updated Jun 13, 2025, 4:03 p.m. Published Jun 12, 2025, 11:42 p.m.
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What to know:
- SharpLink Gaming's shares plummeted 70% after filing to register the resale of nearly 59 million shares.
- The company raised $450 million through a private investment in public equity round to acquire ETH for its treasury.
- Speculation suggests that there's a larger strategy behind the move and the firm may have tapped a previously announced $1 billion ATM offering.
SharpLink Gaming (SBET), a Nasdaq-listed company that is pursuing an ether {{ETH}} treasury strategy, tumbled 70% on Thursday in after-hours trading following a fresh filing to the U.S. Securities and Exchange Commission.
The company submitted an S-3ASR registration statement, enabling the resale of up to 58,699,760 shares related to its private investment in public equity (PIPE) financing.
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The Thursday filing allows more than 100 shareholders in the PIPE round to sell their shares, effectively flooding the market and triggering a post-close sell-off, Charles Allen, CEO of BTCS, a publicly-traded firm that's pursuing crypto reserve strategy, explained in an X post and an interview with CoinDesk.
Let’s break down what just happened to @SharpLinkGaming led by @ethereumJoseph after hours.
— Charles Allen (@Charles_BTCS) June 12, 2025
The stock is down 70% — but why? 🧵
At 4:38 PM, they filed an S-3ASR — automatically effective because they’re now a WKSI (yes, they got the golden ticket). That means all 111 selling… pic.twitter.com/Trib8qtlQe
The company raised $450 million earlier this month through a PIPE round from a wide range of investors, including ConsenSys, Galaxy, and Pantera Capital, to acquire ETH for its treasury. Ethereum co-founder and ConsenSys CEO Joseph Lubin also joined the firm as board chairman.
However, there may be a larger strategy behind the latest move.
Allen said in an X post that he thinks the company may have quietly raised up to $1 billion to buy more ETH using an at-the-market (ATM) offering that was previously announced in a May 30 SEC filing.
"If they played cards right, they would expect a surprise PR tomorrow with $1B of ETH purchases, which could light the match to reignite the stock," he said.
ETH is down 4.1% over the past 24 hours at around $2,650 as bitcoin and the broader crypto markets slid.
Read more: Crypto Cracks Late in Day, Bitcoin Slumps Below $106K
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