SharpLink Gaming Raises $425M To Buy Ethereum, ETH Price Jumps 3%
Highlights
- SharpLink Gaming raises $425 million to fund its ETH accumulation strategy.
- Ethereum price climbs by nearly 4% to settle at $2,648.
- Institutional investors are wading into Ethereum after a lackluster Q1 performance.
US-based SharpLink Gaming has signaled an intention to make Ethereum (ETH) the main asset in its company treasury. To fund the ETH accumulation play, SharpLink has secured capital via the sale of its common stock to a raft of investors.
SharpLink Gaming To Aggressively Acquire Ethereum
SharpLink has confirmed plans to adopt an Ethereum Treasury Strategy, raising capital to fund new ETH purchases. According to a press release, SharpLink Gaming has raised $425 million through a private placement of its shares, tapping a group of venture capital firms.
Per the announcement, the US-based SharpLink Gaming signed a security purchase agreement, effectively selling 69,100,313 shares of its common stock. The agreement sees Consensys Software play the role of lead investor with ParaFi Capital, Pantera Capital, and Galaxy Digital participating in the private investment in public equity (PIPE).
SharpLink Gaming says it will use the funds to explore an Ethereum Treasury Strategy, using ETH as its main reserve asset. Consensys CEO and Ethereum co-founder Joseph Lubin says Consensys will support the company’s pivot to include Ethereum on its balance sheet.
“On close, Consensys looks forward to partnering with SharpLink to explore and develop an Ethereum Treasury Strategy and work with them in their core business as a strategic advisor,” said Lubin.
The purchase follows BTCS’s $8.4M ETH purchase in mid-May, confirming rising institutional interest for the second-largest altcoin.
ETH Price Spikes By 3% Amid Rising Institutional Interest
After a brief period of sideways trading, the Ethereum price has risen by over 3%, jolted by SharpLink Gaming’s announcement. ETH price soared 3.67% over the last day to settle at $2,658, triggering optimism for a rally toward $3,000.
The SharpLink Gaming announcement has triggered a surge in ETH daily trading volume. On-chain data pegs the figure at $21.46 billion, a 61.59% spike over 24 hours.
The 30-day chart reveals a staggering 47.60% increase in ETH price from its previous lows of under $1,500. However, steady institutional interest is contributing to rising figures, with entities like WLFI aggressively buying ETH.
Apart from soaring institutional interest, Ethereum is attracting heavy interest from exchange-traded funds (ETFs). Surging daily spot ETF inflows powered Ethereum to overtake Bank of America (BOA) in terms of market capitalization.
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