TLDR
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SharpLink Crashes 66% After $462M ETH Bet
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Wall Street Shaken by SharpLink’s Ethereum Gamble
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$462M ETH Buyback Sends SharpLink Stock Tumbling
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Crypto Pivot Backfires: SharpLink Stock Nosedives
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SharpLink’s Ethereum Bet Sparks Market Meltdown
SharpLink Gaming Inc. (SBET) Shares crashed 66.58% in pre-market trading on June 13, 2025. The sharp decline followed the company’s surprise announcement of a $462 million Ethereum purchase, which triggered widespread market reaction and sent the stock down 23.49% over the last five days.
SharpLink Gaming Inc. (SBET) Stock
$462M ETH Acquisition Raises Investor Concerns
SharpLink confirmed its purchase of 176,270.69 ETH at an average price of $2,626 per unit, including fees and expenses. The transaction, valued at over $462 million, made the firm the largest public holder of ETH globally. However, the scale and timing of this move raised concerns among shareholders and analysts alike.
BREAKING ⚡:
SharpLink has bought 176K $ETH for $463M today.
Now one of the top public ETH holders, with 95% staked.Giga Bullish 🔥 for $ETH pic.twitter.com/jFmRkya6zW
— Marzell (@MarzellCrypto) June 13, 2025
The company used proceeds from a $79 million at-the-market (ATM) equity raise to help finance the crypto bet. Market participants questioned the sudden shift in capital allocation strategy toward volatile digital assets. As a result, the market responded with a rapid and sharp sell-off, reflecting growing skepticism.
Besides the ATM, SharpLink had earlier secured a PIPE deal that helped build up its crypto reserves. The company emphasized its belief in Ethereum’s long-term value and utility. However, investor confidence was shaken by the abrupt scale of the transition and its timing.
ETH-Focused Treasury Strategy Triggers Sell-Off
SharpLink is the first Nasdaq-listed company to adopt a treasury policy centered entirely on ETH. The firm converted a significant portion of its capital reserves into Ethereum and deployed over 95% into staking and liquid staking platforms. Management stated that this strategy will generate native ETH yield while supporting the network.
Although the company framed this as a long-term commitment to blockchain infrastructure, market reactions suggested unease. The volatility of Ethereum and regulatory uncertainty surrounding digital assets likely intensified investor anxiety. Additionally, analysts raised concerns about the absence of traditional hedging strategies in the company’s financial shift.
The ETH strategy aligns with SharpLink’s broader vision to integrate digital assets into its treasury and business model. Many investors appear to view the move as highly speculative. The broader market downturn further compounded negative sentiment around the company’s future earnings stability.
Stock Collapse Highlights Broader Risk Exposure
SharpLink’s stock closed at $32.53 on June 12 before plummeting to $10.87 in the June 13 pre-market session. The extreme volatility reflects the perceived risk from its large crypto exposure. Traders are now closely watching how the firm manages its ETH reserves amid ongoing price swings.
Analysts cautioned that if ETH prices decline, SharpLink could face substantial unrealized losses. Under U.S. accounting rules, firms must mark crypto assets to market, affecting earnings during each reporting cycle. This means fluctuations in Ethereum’s price could heavily impact quarterly income statements.
Shareholders appear more concerned about potential impairment risks and liquidity constraints. The shift also complicates SharpLink’s traditional business operations in iGaming and sports betting. Investors are assessing whether the firm’s new treasury focus could distract from core revenue-generating activities.
