SharpLink Shares Surge 412% Following $425 Million ETH Treasury Announcement
Shares of SharpLink (SBET) increased by 412% on Tuesday following the announcement of an Ethereum treasury reserve strategy involving co-founder Joseph Lubin. The stock price rose from $7 to $34.45, giving the company a market cap of $23 million.
The firm is raising approximately $425 million through a private investment in public equity (PIPE) offering, with proceeds designated for purchasing ether as the primary treasury reserve asset. Lead investors include Consensys, Pantera Capital, Galaxy Digital, and others.
The offering is set to close on May 29th, and Lubin will assume the role of chairman of the board upon closure.
SharpLink aims to emulate the success of Strategy (MSTR), which saw a 3,000% share price increase over five years due to its bitcoin treasury strategy.
In related news, Trump Media & Technology Group (DJT) announced a $2.5 billion capital raise for a bitcoin treasury strategy.