According to a recent SEC filing, Sharplink Gaming plans to allocate the majority of the funds from its proposed stock sale toward acquiring Ether.
SharpLink Gaming, a U.S.-based sports betting platform, has submitted a filing to the Securities and Exchange Commission (SEC) seeking approval to issue up to $1 billion in common stock, aiming to expand the reserves of its recently established Ether treasury.
In its May 30 filing, SharpLink Gaming stated its plan to utilize nearly all proceeds from the offering to purchase Ether, the primary digital currency of the Ethereum network, widely known as “ETH.”
SharpLink Details Risks of Investing in ETH
The company also mentioned that proceeds from the offering are planned to be allocated toward working capital requirements, overall business operations, day-to-day expenses, and essential affiliate marketing activities.
This follows the company’s May 27 announcement regarding the rollout of a corporate treasury strategy centered on Ethereum.
Ethereum co-founder Joseph Lubin has been appointed by SharpLink as the chairman of its board of directors.
Following the announcement, the stock of SharpLink Gaming experienced a 400% increase over the course of the May 27 trading session.
The filing highlighted various risks associated with the large-scale Ether (ETH) acquisition, including the potential emergence of central bank digital currencies (CBDCs), which might reduce or eliminate the demand for privately issued cryptocurrencies or greatly diminish their practical use.
The potential classification of Ether as a “security” was also identified as a risk, which, according to the company, would compel compliance with further regulatory requirements.
Community Crowns SharpLink as Ethereum’s Michael Saylor
The filing prompted many within the community to liken the betting platform to Ethereum’s counterpart of Bitcoin enthusiast Michael Saylor, who is well known for his bold Bitcoin purchases through his company, Strategy.
As reported by Saylor Tracker, Strategy currently possesses 580,250 Bitcoin, with a total value of $60.22 billion at the time of publication.
In a post on X, crypto analyst 0xBoboShanti remarked, “Ethereum now officially has its own Saylor.” At the same time, Ethereum advocate Anthony Sassano commented, “You’re still not bullish enough.”
According to data from CoinMarketCap, Ether is priced at $2,516 at the time of writing, reflecting a 4.51% decline over the last 24 hours.
This development follows a recent filing by ETF issuer REX Shares, prompting analysts to predict that the first staking ETFs for Ethereum and Solana could debut in the U.S. in a matter of weeks.
Analysts noted that REX Shares employed “regulatory workarounds” that may allow staking to be included in ETFs—an approach that other issuers have found difficult to implement.
