SharpLink Gaming, with backing from Ethereum co-founder Joseph Lubin, has made a significant $515 million purchase to increase its Ether (ETH) reserves.
The company now holds over 280,000 ETH and aims to expand its treasury holdings to nearly 1 million ETH. This volume represents approximately 1.38% of Ethereum’s circulating supply.
To generate passive income, SharpLink has staked 99.7% of its ETH holdings. Between June 2nd and July 15th, this strategy yielded 415 ETH in rewards, equivalent to approximately $1.49 million.
Despite this aggressive accumulation of ETH, SharpLink’s stock (SBET) experienced volatility. The stock declined by 2.62% during Thursday’s session and dropped a further 4.95% in after-hours trading, though it remains up 350% year-to-date.
SharpLink’s financial performance has shown challenges. The company reported a 24% year-on-year revenue decline and a 110% decrease in net profit margin in the March quarter. Updated financial results are scheduled for release on August 13th.
Galaxy Research highlighted SharpLink’s substantial ETH accumulation as a positive development for the Ethereum ecosystem, suggesting it could encourage other corporations to consider similar treasury strategies.
The company facilitated this large-scale ETH acquisition by increasing its authorized equity sale to $6 billion from an initial $1 billion.