SharpLink Gaming, which provides performance-based marketing services to the U.S. sports betting and global iGaming sectors, has raised $425 million in a private placement to fund the adoption of Ethereum as its primary treasury reserve asset.
SharpLink Gaming Raises $425M to Launch Ethereum Treasury Strategy
Capital Raise Brings Crypto Integration to the Fore
The transaction, structured as a private investment in public equity (PIPE), involves the issuance of over 69 million shares of common stock at $6.15 per share — with a higher price of $6.72 applied to certain company insiders. Gross proceeds are expected to reach approximately $425 million before expenses.
The offering is anchored by Consensys Software Inc., and includes participation from a wide array of crypto-focused firms such as ParaFi Capital, Electric Capital, Pantera Capital, Galaxy Digital, Arrington Capital, White Star Capital, and others. SharpLink CEO Rob Phythian and CFO Robert DeLucia also joined the round as individual investors.
The proceeds will primarily be used to acquire ETH, pending other working capital requirements. ETH will function as the company’s primary treasury reserve asset, marking a significant departure from conventional treasury practices among publicly traded gaming companies.
Joseph Lubin to Chair SharpLink Board
Upon closing of the deal, Ethereum co-founder and Consensys CEO Joseph Lubin will assume the role of Chairman of the Board at SharpLink. His appointment underscores the strategic nature of the investment and aligns SharpLink with Ethereum’s broader ecosystem.
“This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business. On closing, we look forward to working with Consensys and welcoming Joseph to the Board,” said Rob Phythian, Founder and CEO of SharpLink.
“On close, Consensys looks forward to partnering with SharpLink to explore and develop an Ethereum Treasury Strategy and to work with them in their core business as a strategic advisor. This is an exciting time for the Ethereum community, and I am delighted to work with Rob and the team to bring the Ethereum opportunity to public markets,” said Joseph Lubin, Founder and CEO of Consensys and Co-Founder of Ethereum.
The private placement is being conducted under exemptions provided by Section 4(a)(2) of the Securities Act and Regulation D, with resale restrictions in place until the securities are registered. As part of the transaction, SharpLink and the participating investors have entered into a registration rights agreement that will require the company to file a resale registration statement with the SEC.
The offering is expected to close on or around 29 May 2025, subject to customary closing conditions.
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