With Ethereum quickly becoming a dominant asset in the crypto world, SharpLink is moving fast to become one of the top accumulating entities themselves. The company’s announcement represents a broader strategic shift away from centralized exchanges towards Ethereum as a treasury reserve asset. This change has caused a dramatic increase in its holdings. SharpLink is moving very quickly. At this rate, it won’t be long before it is the largest corporate holder of Ethereum’s native cryptocurrency, ETH, ahead of the Ethereum Foundation.
SharpLink, headed by CEO Rob Phythian, revealed its “expanded focus outside of our core business” in May. This action indicated a tactical shift to prioritize digital assets, with a key focus on Ethereum. The company’s stock price surged 2,700% within four days of the announcement. All of that changed when by May 30, they hit an all-time high of $124. After SharpLink made the rookie move of submitting an SEC filing that enabled insiders to quickly sell their shares, the stock crashed another 75%. Having dipped below $10 on June 13, SharpLink stock is already back up to $18.
Aggressive Ethereum Acquisition Strategy
SharpLink has been aggressively acquiring Ethereum. The company sold about $425 million in stock to a group of investors that included Consensys and said it would use the money to purchase Ethereum, which would "serve as the Company’s primary treasury reserve asset." Joe Lubin, whose Ethereum software company Consensys has been integral to the Ethereum infrastructure, is the chair of SharpLink’s board of directors.
"We are accumulating more and more consistently — we’re able to acquire tens of millions of dollars in Ether a day" - Joe Lubin
SharpLink’s $64 million offering came in during the week of June 28-July 4. They will use $37 million of that to purchase additional Ethereum. As of Thursday, SharpLink had $612 million.
Staking Rewards and Total Holdings
Additionally, SharpLink has been generating Ethereum via staking and restaking operations. Since June 2, the company has accrued 322 Ethereum ($652,000) through these endeavors. However, as of Thursday, 46 different plaintiffs still control more than 1.34 million Ethereum worth over $3.6 billion, much of which is tied to SharpLink.
SharpLink with this purchase has now become the second largest corporate holder of Ethereum. At its current rate, the company is on track to soon exceed the Ethereum Foundation’s massive Ether reserve.
Market Impact and Future Outlook
SharpLink’s bullish ETH market manipulation galore has clearly made waves. The company’s investment strategy reflects the growing institutional interest in Ethereum. This positions Ethereum as not just a store of value, but as a bedrock of the decentralized finance (DeFi) movement.
What this means long-term for SharpLink’s strategy is yet to be determined. Still, the company’s enormous bet on Ethereum makes it one of the largest blockchain companies in the world.
