SharpLink Gaming Raises $76.5M at Premium Valuation to Buy Ethereum

SharpLink Gaming, a treasury-focused firm supported by Ethereum (ETH) co-founder Joseph Lubin,  has successfully raised $76.5 million. According to a post on X, the funds were raised by offering shares directly at $17 each, which is 12% higher than the current market price. 

The company also introduced a new option to purchase shares at $17.50 each. This could bring in an extra $79 million at a 19% premium to the market.

SharpLink New Funds Targets ETH-Led Shareholders Growth

This fundraising effort reflects SharpLink’s commitment to increasing the value of its shares over time while benefiting its shareholders. Unlike many other fundraising efforts that reduce the value of existing shares, this offering was designed to provide immediate benefits to current shareholders.

The funds will be used to increase the value of each share. Meanwhile, the additional $79 million purchase option will offer the company flexibility. This means SharpLink can utilize the opportunities in digital assets, make strategic purchases, or integrate new protocols without lowering its current share value.

Recall that Joseph Lubin emphasized that the company’s strategy focused on generating value for shareholders. It plans to do this through yield creation and careful management of capital.

SharpLink Gaming Boosts ETH Treasury

There is no doubt that SharpLink Gaming has become one of the most aggressive corporate buyers of Ethereum. The Nasdaq-listed company revealed in August that its Ethereum stash has grown to 797,704 ETH, valued at $3.64 billion, after its large purchase. Interestingly, the move placed SharpLink among the leading public companies building sizable Ethereum treasuries.

In August, the company bought 56,533 ETH for about $252 million, paying an average of $4,462 per token. To fund these purchases, SharpLink raised $360.9 million in fresh proceeds through its at-the-market equity program. 

These moves keep the U.S.-listed company at the top of the growing group of digital asset treasuries (DATs). These are public companies that buy and hold crypto as a core corporate strategy.

Growing Market for Ethereum Treasuries

As reported by TheCoinRise, the company’s strategy focuses on generating value for shareholders through yield creation and capital management. As such, SharpLink stands out from other companies by using this strategy.

According to reports, the total market value of companies holding ETH on their balance sheets has now surpassed $10 billion. This reflects a growing trend in digital asset treasuries. BitMine Immersion Technologies, which recently held about 2.83 million worth of Ethereum, is leading this trend.

Nevertheless, SharpLink’s aggressive accumulation, staking, and ETH management place it among the top holders of Ethereum among publicly traded companies.