SharpLink Gaming Boosts ETH Holdings With $400 Million Deal As Ethereum ETFs See Record $1 Billion Inflows
SharpLink Gaming announced a $400 million deal to help the company bolster its ETH holdings as inflows into US spot Ethereum ETFs (exchange-traded funds) topped $1 billion for the first time.
SharpLink said yesterday that it had entered into a share purchase agreement with “five global institutional investors” to boost its ETH holdings to above $3 billion.
As part of the deal, SharpLink shares were sold at $21.76 each.
SharpLink Shares Tumble After News Of Latest Deal Breaks
After news of the $400 million deal broke, shares in the company closed yesterday’s trading session more than 6.6% down for the day. But some traders saw the decline as a buying opportunity, with the stock recovering over 3.8% in after-hours trading, according to data from Google Finance.
Despite the recent drop, SharpLink shares are still more than 188% up year-to-date.
SharpLink Gaming is currently the second largest ETH treasury firm, with its holdings of 598.8K ETH. At current prices, this values the Ethereum reserves at about $2.58 billion, data from StrategicETHReserve shows.
With Ethereum co-founder Joseph Lubin as its chair, SharpLink is only topped by Tom Lee’s Bitmine Immersion Tech, which holds $1.2 million ETH valued at $4.96 billion.
Ethereum ETFs See Record $1 Billion Inflows
SharpLink’s deal comes at a time of heightened institutional interest in ETH. Around 70 firms have added the altcoin to their balance sheets, according to the StrategicETHReserve data.
The interest in ETH is evident with the rising inflows for US spot Ethereum ETFs. Just yesterday, the funds experienced record inflows after investors pumped over $1.018 billion into the products.
That marked the ETFs’ highest net daily inflows since their launch in July last year. BlackRock’s ETHA fund led the charge, pulling in $639.8 million.
Despite the buying frenzy around ETH, the crypto only managed a 1% gain in the last 24 hours to trade at $4,322.41 as of 4:50 a.m. EST.
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