SharpLink’s Ethereum Treasury Falls to $425M under Joseph Lubin’s Direction

SharpLink Gaming intends to create a treasury valued at $425 million in Ethereum (ETH) under the leadership of Consensys CEO and Ethereum co-founder Joseph Lubin, as revealed on May 27.

The sports-betting technology firm has engaged in securities purchase agreements for a private equity investment. The company plans to issue 69.1 million shares, priced at $6.15 each, or $6.72 for management investors.

Closing on May 29 is projected to yield approximately $425 million in gross proceeds, prior to any applicable fees. Furthermore, SharpLink indicated that the ETH reserve will coexist with its existing business operations rather than replace them.

Consensys led the investment, partnering with crypto-focused funds such as ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital. CEO Rob Phythian and CFO Robert DeLucia also participated in the financing round.

The firm aims to convert the total funds raised into ETH and utilize this asset as its primary treasury reserve while keeping an eye on its working capital requirements.

In addition, Lubin is set to join SharpLink’s board, offering guidance on the treasury initiative and key business strategies. He referred to the collaboration as “an opportunity to present the Ethereum narrative to public markets” and mentioned that Consensys would provide strategic counsel following the treasury establishment.

SharpLink has yet to announce a schedule for purchasing or a staking partner.

Former Ethereum core developer Eric Conner categorized the strategy as an “ETH edition” of Strategy’s Bitcoin (BTC) approach in a post shared on May 27.

He described a system in which SharpLink gathers funds below net asset value, acquires and stakes ETH, and potentially sells additional shares if the stock value exceeds the worth of its ETH holdings per share.

Conner projected that this method would facilitate long-term staking of ETH and create a public-market option for investors who do not have direct access to the tokens.

He also provided insights for traders, including the premium relative to ETH’s net asset value, the possibility of follow-up offerings should a premium arise, and whether similar micro-cap firms would adopt the model.

Conner positioned supply compression and a straightforward equity wrapper as favorable for Ether’s integration into corporate balance sheets.

As reported, Ethereum was trading at $2,564.72 as of the latest update, reflecting a 4.5% increase for the day and outperforming the average gains of other major altcoins.

At the time of the report, Bitcoin ranked #1 by market cap, with its price showing a slight increase of 0.56% over the previous 24 hours. Bitcoin’s market capitalization stood at $2.18 trillion, with a trading volume of $56.46 billion during that period.

The total cryptocurrency market was valued at $3.47 trillion at the same time, with a 24-hour trading volume of $130.5 billion and Bitcoin dominance at 62.97%.