Sharplink Gaming Inc. filed to sell up to $5 billion worth of additional common stock, primarily to fund its purchase of ether for the corporate treasury.
Sharplink Boosts Stock Offering to $6 Billion
The Minneapolis-based online gaming marketing company disclosed the plan in a Securities and Exchange Commission (SEC) filing this week. The new shares supplement an existing $1 billion stock sales program, raising the total potential offering under its agreement with sales agent A.G.P./Alliance Global Partners to $6 billion.
Sharplink already sold shares worth approximately $720.8 million under the prior authorization. Sharplink further stated that it intends to use “substantially all” cash proceeds from the new sales to acquire ethereum (ETH), the native cryptocurrency of the Ethereum blockchain.
The company adopted ETH as its primary treasury reserve asset in May, citing goals of diversifying reserves, enhancing capital efficiency, and aligning with emerging financial technologies. As of July 13, the firm told the SEC it held 280,706 ETH, with 99.7% deployed for staking rewards.
The company, trading on Nasdaq under “SBET,” also amended its sales agreement to permit forward sales of its stock. Shares closed at $37.38 on July 16. Sharplink focuses on performance-based marketing for sportsbooks and casinos and is expanding into crypto gaming, including a stake in the domain Cryptocasino.com.
Sales will occur “at the market” through Nasdaq or other U.S. venues, according to the SEC filing. A.G.P. will earn commissions ranging from 2.0% to 4.0%, depending on the sales volume and type. Sharplink reported a 26.1% year-over-year revenue decline from its core affiliate marketing services for 2024. In addition to ethereum, proceeds may also cover working capital, corporate expenses, and core operations, the company concluded.
