SharpLink Gaming, Inc. has conducted a $76.5 million registered direct offering, selling 4.5 million common shares at $17 per share, which represented a 12% premium over its previous closing price of $15.15. The company also granted investors the option to purchase an additional 4.5 million shares at $17.50 per share within 90 days, potentially raising another $78.8 million. Co-CEO Joseph Chalom emphasized that the funds are intended to expand SharpLink's Ethereum holdings, increasing the amount of ETH per share for investors and reflecting institutional confidence in their long-term vision.
Despite this strategic move, SharpLink's stock price has declined, falling roughly 13% over the past month and trading at around $14.82 as of Thursday, below the initial sale price. Analysts from Citizens JMP Securities have initiated coverage with a market outperform rating and a price target of $50, projecting a nearly 200% upside from current levels. They cited SharpLink as a unique way for investors to gain exposure to Ethereum's growth potential, with expectations that the company's net asset value per share could rise from under $20 to approximately $35 by the end of 2026.
SharpLink currently holds over 830,000 ETH, valued at approximately $3.38 billion, but has significantly slowed its acquisitions, adding only about 2,900 ETH in the last month. In contrast, competitor BitMine Immersion Technologies has accelerated its accumulation, now holding more than 3 million ETH—over 2.5% of the total Ethereum supply—valued at over $12.1 billion. This intensifying competition highlights the challenges SharpLink faces in maintaining its position in the market.
The broader cryptocurrency market has experienced volatility, with Ethereum's price surging to a record high of $4,946 in August before plunging to below $3,700 recently amid geopolitical tensions and liquidations exceeding $19 billion in a single day. As of the latest data, Ethereum is trading at $3,980, down more than 8% on the week, contributing to investor caution and mixed reactions to SharpLink's equity sale and dilution concerns.
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