SharpLink Gaming, Inc. has embarked on another milestone financial deal, announcing a private investment in public equity (PIPE) that should bring in gross proceeds of approximately $425 million. This financial move involves the sale of over 69 million shares of common stock, priced at $6.15 per share. The company intends to use these proceeds to purchase the Ethereum cryptocurrency, using it as its primary treasury reserve asset.
Crypto Heavyweights Backed the Deal
This strategic endeavor marks one of the company’s most ambitious capital-raising efforts to date, aligning with its ongoing shift toward crypto-based financial infrastructure. Consensys Software Inc., a leader in Ethereum development, leads this newest investment round, joined by other prominent players in the digital asset space. These include names like ParaFi Capital, Galaxy Digital, Pantera Capital, Arrington Capital, and Republic Digital.
A.G.P./Alliance Global Partners will act as the sole placement agent for the offering, expected to close on or around May 29, pending customary regulatory and contractual conditions. Rob Phythian, founder and CEO of SharpLink, is also taking part in the investment, reflecting management’s confidence in the company’s direction.
This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business.
Rob Phythian, SharpLink founder and CEO
Joseph Lubin, co-founder of Ethereum and CEO of Consensys, will also gain a seat on SharpLink’s board of directors. He was optimistic that this initiative would enable more companies to consider Ethereum as an alternative for diversifying their financial futures. While details about the deployment of Ethereum are yet unclear, SharpLink has indicated that the asset will be held on its balance sheet.
SharpLink Presses on with Diversification
Headquartered in Minneapolis, SharpLink has secured a unique niche in the iGaming affiliate space through its PAS.net network and portfolio of geo-targeted websites. These platforms send traffic to licensed iGaming and online sports wagering operators across the US and international markets. The company also operates the global affiliate network PAS.net, uniting bettors with regulated operators.
While affiliate marketing remains SharpLink’s primary revenue driver, the business has made moves to diversify its offerings. The company made a $500,000 investment for a 10% equity stake in CryptoCasino.com’s parent company, Armchair Enterprises Limited, underlying its firm belief in the future of digital assets within the broader gambling ecosystem.
The PIPE deal follows an earlier public offering aimed at raising an additional $4.5 million. This diversified funding strategy should allow the company to pursue its strategic objectives, positioning it at the crossroads of traditional iGaming and the emerging digital finance revolution, where it can remain at the forefront of industry developments.