SharpLink, an online casino marketing company, is building an Ethereum treasury with plans to secure an additional $1 billion in funding. Joseph Lubin, Consensys CEO, has been appointed Chairman of the Board to oversee this strategic expansion.
Consensys CEO Joe Lubin appears to be edging nearer to a role akin to Ethereum’s version of Michael Saylor.
On June 2, SharpLink Gaming, a company focused on online casino marketing, successfully completed a $425 million funding round. The initiative, spearheaded by Consensys, is aimed at establishing a substantial Ethereum treasury.
As a result of the agreement, Ethereum co-founder Joe Lubin has taken on the role of Chairman of the Board at SharpLink, a company listed on NASDAQ.
“This collaboration with SharpLink marks more than a financial achievement,” stated Lubin in the announcement. He emphasized that capital markets are increasingly acknowledging the significance of programmable assets such as ETH in shaping global systems of value, trust, and finance.
SharpLink’s $425 million fundraising followed a May 30 filing with the Securities and Exchange Commission (SEC) that disclosed the firm’s goal of securing an additional $1 billion. The company stated that it plans to use ‘substantially all’ of those funds to purchase Ether.
As the executive chairman of Strategy, Saylor has accumulated over 581,000 BTC—valued at approximately $60.6 billion—as part of his firm’s Bitcoin treasury initiative. SharpLink now seems to be adopting a similar approach, though with a more modest scale and focused on the second-largest cryptocurrency. According to Lubin, the concept of an Ethereum Treasury began forming in his mind around six months ago, following a dinner conversation with Saylor, as he shared with Bloomberg.
Scarcity of Ethereum Treasuries Among Public Companies
SharpLink announced its intention to develop what it described as the most extensive Ethereum treasury strategy available within public markets.
Although more companies are increasing their Bitcoin holdings, publicly traded firms have rarely established treasuries centered around Ethereum.
KPMG’s Canadian branch incorporated both Bitcoin and Ether into its treasury in 2022. However, Ethereum-focused treasuries remain rare beyond the realm of crypto-native firms. In December, the Hong Kong-based gaming company Boyaa Interactive converted its $49 million ETH reserve into Bitcoin. Similarly, Meitu, a Hong Kong-based app developer, previously held significant amounts of ETH and BTC. However, the South China Morning Post later reported that the company had sold those assets.
Coinbase, a leading cryptocurrency exchange, reportedly holds a significant ETH reserve in its corporate treasury. Meanwhile, as of March 31, crypto mining firm Bit Digital disclosed possession of roughly 24,400 ETH, with the majority staked to generate yield in Ether.
SharpLink Surges 1,500% After Ethereum Treasury Reveal
SharpLink’s share price experienced a sharp decline today, falling nearly 50% to $48 from its peak of $92.87 on May 29.
However, before SharpLink’s announcement on May 27 regarding the finalized deal, SBET had been trading at merely $3.58. Since the declaration of its Ethereum Treasury initiative, the stock has surged by approximately 1,500% to its current valuation.
ETH trades at approximately $2,600, reflecting a 43% increase over the past month after the successful implementation of the Pectra upgrade.
