Share this article
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.
Make us preferred on Google
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.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
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
More For You
More For You
Bitcoin, ether rise as altcoins lag in low-volatility trade
Bitcoin and ether tick higher, but weak altcoin breadth, heavy liquidations and elevated options hedging suggest traders remain cautious.
What to know:
- BTC trades near $67,000 and ETH near $1,970, with volatility fading after Feb. 5’s selloff.
- Derivatives show stabilization, with open interest at $15.38 billion and funding positive
- Elevated short-term implied volatility signals caution.
- $218 million in liquidations and 97 of top 100 tokens in the red underscore fragile sentiment.
Top Stories
