Sharplink Gaming’s stock plummeted 73% in after-hours trading following an SEC filing registering 58.7 million common shares for potential resale, sparking fears of an imminent sell-off. Company executives swiftly clarified that the filing represented a routine administrative procedure rather than an immediate liquidation plan.
The firm intends to sell up to $1 billion in shares to fund an Ethereum-based treasury strategy, designating ETH as a primary reserve asset. This approach aims to capitalize on Ethereum’s long-term value potential and enhance corporate liquidity.
Market analysts indicate that announcing the planned $1 billion Ether acquisition could rebuild investor trust and stabilize Sharplink’s stock price, countering the initial panic-driven decline. The strategy signals accelerating institutional adoption of Ethereum for treasury reserves, potentially encouraging similar moves by other corporations and boosting ETH demand.
This pivot reflects broader corporate crypto asset management trends, with Consensys’ involvement—including a recent $425 million funding round—highlighting institutional endorsement of Ethereum-focused treasury frameworks.