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MINNEAPOLIS - SharpLink Gaming, Inc. (Nasdaq:SBET), a $1.19 billion market cap company whose stock has surged nearly 46% in the past week, has purchased 10,000 Ethereum (ETH) from the Ethereum Foundation for $25.7 million, according to a press release statement issued Friday. InvestingPro data shows the company maintains a strong cash position, with liquid assets exceeding short-term obligations.
The transaction, which closed on Thursday, was executed at a price of $2,572.37 per ETH. The Ethereum Foundation, based in Zug, Switzerland, is one of the main organizations supporting the development of the Ethereum blockchain protocol. According to InvestingPro analysis, SharpLink’s stock typically trades with high volatility, with additional insights available to subscribers.
Joseph Lubin, Chairman of SharpLink, Co-Founder of Ethereum and Founder of Consensys, described the purchase as a long-term commitment rather than a trading move.
"At a time when Ethereum is entering a new era of institutional relevance, we are proud to support the network’s long-term strength and decentralization mission," Lubin said.
SharpLink, which describes itself as the world’s largest publicly traded company to adopt Ethereum as its primary treasury reserve asset, plans to stake and restake the acquired ETH.
The Minneapolis-based company operates in the online gaming and sports betting sector. According to the company’s statement, it aims to leverage smart contracts, decentralized finance protocols, and Web3 infrastructure to transform the iGaming industry.
The transaction represents approximately 0.01% of Ethereum’s total circulating supply, based on current market data. While the company’s stock has shown impressive momentum with a 156% gain over the past six months, current valuations suggest the stock may be trading above its Fair Value.
In other recent news, SharpLink Gaming has made significant strides in expanding its Ethereum holdings, acquiring an additional 7,689 ETH at an average price of $2,501 per token. This acquisition brings the company’s total Ethereum holdings to 205,634 ETH, reinforcing its position as a major publicly traded holder of this cryptocurrency. SharpLink has committed all its ETH holdings to staking protocols, resulting in approximately 322 ETH earned in staking rewards since the program’s inception in June. To support this strategy, the company raised around $64.0 million through its At-The-Market facility, with $37.2 million of that yet to be allocated to further ETH purchases. Additionally, SharpLink Gaming has appointed KPMG LLP as its new independent registered public accounting firm, following the dismissal of Cherry Bekaert LLP. The company also recently commenced options trading on the Nasdaq Options Market, a move expected to enhance liquidity and investor access. SharpLink’s leadership, including Chairman Joseph Lubin, continues to emphasize its ETH-centric treasury management strategy as a means of maximizing long-term shareholder value.
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