Sharplink Gaming (SBET), a Nasdaq-listed sports betting platform pursuing an Ethereum treasury strategy, saw its shares plummet over 70% in after-hours trading following a significant filing with the U.S. Securities and Exchange Commission (SEC). This filing registered the potential resale of nearly 58.7 million common shares, triggering panic selling by investors who misunderstood the action as an imminent large-scale share sale.
Sharplink’s chairman, Joseph Lubin—also CEO of blockchain software firm ConsenSys—clarified that the registration was for a possible resale and not an actual sale, describing it as a routine post-private investment in public equity (PIPE) procedure.
The company recently completed a $450 million PIPE funding round led by ConsenSys, Galaxy, and Pantera Capital aimed at acquiring Ether (ETH), furthering its Ethereum-based treasury plan. Speculation is mounting that Sharplink might leverage an existing at-the-market (ATM) offering to quietly raise up to $1 billion for additional ETH purchases—a move which could help rebound the company’s stock if officially announced.
While Sharplink’s stock price plunged dramatically—dropping from $32.53 to under $8 in after-hours before recovering to around $10.55—it remains to be seen if the Ethereum buy strategy will restore investor confidence. Notably, Ethereum’s price has declined approximately 4.1% over 24 hours amid broader market weaknesses.