Nasdaq-listed online marketing company SharpLink Gaming (SBET) has announced that it has secured a $425 million private investment (PIPE) through selling 69.1 million shares at $6.15 per share.
The public company intends to channel this million-dollar stash into Ethereum’s ETH. This significant move might earn the firm a new title — the MicroStrategy of Ethereum.
Consensys Leads the Funding
Alongside the significant ETH investment, SharpLink inked a partnership with Consensys, an Ethereum-focused software company, as its lead investor. Top crypto firms and infrastructure providers, including ParaFi Capital, Electric Capital, and Pantera Capital, also joined the investment round. Others who partook also include SharpLink’s CEO, Rob Phythian, and CFO, Robert DeLucia.
The firm expects to close the $425 million investment by May 29, 2025. It plans to use the funds primarily to acquire Ethereum (ETH) as its primary treasury asset, with some allocated for working capital and corporate purposes. In addition, SharpLink will file a registration statement with the United States Securities and Exchange Commission for the resale of common stock shares per investor agreements. The placement agent duties for this offering are being handled exclusively by Alliance Global Partners.
Commenting on the latest partnership, SharpLink’s Founder and CEO, Rob Phythian, said:
“This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business. On closing, we look forward to working with Consensys and welcoming Joseph to the Board.”
MicroStrategy of Ethereum
SharpLink, based in Minneapolis, Minnesota, is a leading marketing partner for top sportsbooks and online casinos globally. It drives traffic and player growth through its affiliate network and state-specific websites, connecting licensed gaming operators with targeted audiences.
Consensys, founded in 2014 by Joseph Lubin, the co-founder of Ethereum, is a key player in Ethereum’s ecosystem. It develops critical infrastructure, tools, and protocols. With products like MetaMask and significant contributions to Ethereum’s protocol, Consensys is poised to further accelerate Ethereum’s growth.
Following the $425 million investment in ETH, Lubin is expected to take on the role of chairman of the company’s board of directors.
Effect on ETH
SharpLink’s investment partially explains why Ethereum outperformed Bitcoin (BTC), Solana (SOL), and XRP in the crypto market.
While ETH has gained over 5.1% within the past 24 hours, BTC, SOL, and XRP are up by 0.089%, 1.66%, and 0.89%, respectively, during the same period.
