Key Takeaways:
- SharpLink raises another $400 million from five global institutional investors in a securities purchase agreement.
- Following the announcement, SharpLink’s share price jumped to an intraday high before declining by over 6%.
- Spot ETH ETF recorded the highest net inflows in a single day at $1.02 billion.
SharpLink Gaming Ltd. (SBET), in its recent press release, announced that it has secured an additional $400 million in funding from five global institutional investors in a securities purchase agreement. The company plans to grow its total Ethereum (ETH) holdings to over $3 billion. SharpLink presently holds 598,800 ETH valued at approximately $2.5 billion at the time of writing, according to data from CoinMarketCap.
The recent announcement by SharpLink shows the rising demand for ETH to be adopted as a corporate reserve asset. In a statement, SharpLink co-CEO Joseph Chalom said, “The speed and scale of these investments reflect not only investor trust in SharpLink but also the growing recognition of Ethereum’s transformative potential.” In the last week, the corporation has raised around $900 million to support its accumulation strategy, he said.
Despite a 3.69% rise in the price of Ethereum in the last 24 hours, SharpLink’s stock displayed significant volatility, ultimately closing down 6.6% at $22.26 after failing to hold an intraday high of $28.26.
With the additional $400 million from the securities purchase agreement and about $200 million in previous proceeds yet to be deployed, the company is well on its way to becoming one of the biggest publicly traded Ethereum treasury companies. SharpLink will raise this $400 million by selling its shares at $21.76 to the five global institutional investors. According to the press release, if all closing requirements are met, the sale is anticipated to close on Tuesday, August 12. According to a Standard Chartered analyst, this trend, which sees businesses like BitMine and EtherMachine acquiring billions of ETH, may soon make up 10% of the asset’s total circulating supply.
According to the most recent data, the spot ETH exchange-traded fund (ETF) recorded $1.02 billion in net inflows on August 11th, so far the largest inflows in a single day since the inception of spot ETH ETFs.
