SharpLink Gaming, a Nasdaq-listed gaming company, has made a bold move in the cryptocurrency market by becoming the largest corporate holder of Ethereum (ETH), surpassing the Ethereum Foundation. Between July 7 and July 13, the company acquired 74,656 ETH for approximately $213 million, at an average price of $2,852 per ETH. This purchase brought SharpLink’s total ETH holdings to 280,706, valued at around $881 million, according to data from Arkham.
SharpLink’s acquisition spree continued, with the company purchasing an additional 6,377 ETH, bringing its seven-day buying spree to a total of 91,330 ETH obtained for about $275 million. The company has since staked almost all of its cryptocurrency, yielding more than 415 ETH, which translates to $1.3 million in rewards since early June. This strategy has resulted in a 23% increase in the company’s “ETH Concentration” metric, indicating a rapidly growing ETH exposure per share.
To fund these acquisitions, SharpLink raised $413 million in fresh capital through its at-the-market (ATM) equity program between July 7 and July 11. The company has already used $156 million from this capital, with another $257 million earmarked for additional ETH purchases. This significant investment underscores SharpLink’s commitment to the Ethereum ecosystem and its belief in the potential of ETH as a valuable asset.
The impact of SharpLink’s monumental accumulation of ETH has been evident in the market. The company’s share value has surged, with its stock price increasing by 21.31% during regular trading hours and an additional 11.32% in after-hours trading. Meanwhile, ETH has seen a respectable 5.8% gain in the last 24 hours and a 20.7% climb over the past week, outpacing Bitcoin, the world’s largest cryptocurrency by market cap. Ethereum’s improvement is also evident over longer time frames, with a 28.8% jump in two weeks and a 22.0% increase over the past month.
SharpLink’s dominance in the ETH market has significant implications. As the largest corporate holder, the company’s actions and decisions can influence market sentiment and the overall trajectory of ETH. The substantial investment in ETH by SharpLink also underscores the growing institutional interest in cryptocurrencies, particularly Ethereum. This trend is likely to continue as more corporations recognize the potential of digital assets and seek to integrate them into their investment portfolios.
SharpLink’s strategy of staking a significant portion of its ETH holdings is also noteworthy. Staking not only provides a means of earning passive income but also supports the security and stability of the Ethereum network. By staking 99.7% of its holdings, SharpLink is actively contributing to the network’s health while also benefiting from the rewards associated with staking. This dual benefit makes staking an attractive option for large-scale ETH holders and highlights the potential for other corporations to follow suit.
