SharpLink Gaming, a U.S.-based digital marketing company serving the sports betting and iGaming sectors, announced today that it has secured a $425 million private placement to support a major strategic shift.
The compnay plans to use this fund to buy Ethereum and make it a primary asset in its treasury. SharpLink has entered into securities purchase agreements to sell around 69.1 million shares at $6.15 each ($6.72 for certain management), and this deal is expected to close by May 29, 2025.
According to the press release, the investment is led by Consensys Software Inc. blockchain technology company alongside other participants including well-known crypto investors like Pantera Capital, ParaFi Capital, Electric Capital, Galaxy Digital, Arrington Capital, and Republic Digital. SharpLink CEO Rob Phythian and CFO Robert DeLucia are also investing personally in the round.
Once the deal closes, Joseph Lubin, Founder and CEO of Consensys and Co-Founder of Ethereum, will become the Chairman of SharpLink’s Board of Directors. “This is an exciting time for the Ethereum community, and I am delighted to work with Rob and the team to bring the Ethereum opportunity to public markets,” said Lubin in the official statement.
The company plans to use the proceeds from the private placement to buy ETH, the native cryptocurrency of the Ethereum blockchain. ETH will become SharpLink’s main treasury asset. The move is designed to explore the use of blockchain and crypto in financial management, while still focusing on the company’s core marketing services.
“This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business. On closing, we look forward to working with Consensys and welcoming Joseph to the Board,” said Rob Phythian, Founder and CEO of SharpLink.
The offering is private and was being made under Section 4(a)(2) of the Securities Act and Regulation D, meaning it’s exempt from standard SEC registration. Still, SharpLink has agreed to file documents later with the SEC so the new shares can be resold publicly. A.G.P./Alliance Global Partners is acting as the sole placement agent for the deal.
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