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Investing.com -- Sharplink Gaming Ltd (NASDAQ:SBET) stock surged 174.4% at close following comments from Martin Shkreli highlighting the limited float of the company’s shares. Shkreli, the former CEO of Turing Pharmaceuticals, noted that out of the 69 million shares issued by Sharplink Gaming, less than 2 million are currently tradeable. This is due to a registration rights agreement that will not be effective for several months, restricting the majority of shares from being traded.
The commentary from Shkreli, who has a controversial past in the pharmaceutical industry, has sparked a significant reaction in the market. He mentioned that only the 2 million shares are effectively contributing to the tradeable market cap, which he estimates to be around $130 million. Shkreli also speculated on the stock’s potential, suggesting it "may go to 500-1000," but advised caution by stating, "I bought small, do not buy."
This surge comes despite Shkreli’s notorious history, which includes a 5,000% price hike of a critical AIDS medication and a conviction for securities fraud and conspiracy in 2017. His early release from prison in 2022 came with a lifetime ban from the pharmaceutical industry.
Investors appear to be responding to the scarcity of available shares rather than the company’s fundamentals or Shkreli’s endorsement. The stock movement underscores the impact that limited float and speculative commentary can have on share prices, especially when involving high-profile figures.
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