ETH Jumps 4% as Sharplink Gaming Announces $425 Million Ether Treasury Strategy

Home » News » ETH Jumps 4% as Sharplink Gaming Announces $425 Million Ether Treasury Strategy

2 weeks ago

Ethereum Surges as Sharplink Gaming Announces $425 Million ETH Treasury Strategy

Ethereum (ETH) experienced a 4% surge on Tuesday following Sharplink Gaming’s announcement of a $425 million private placement, spearheaded by Consensys, to acquire ETH as its primary treasury reserve asset. This move signals growing corporate interest in digital asset treasury strategies.

Sharplink to Incorporate ETH as Treasury Reserve

Sharplink Gaming is set to integrate Ether into its treasury reserves, according to a press release. The company has entered into a private investment in public equity (PIPE) agreement for the issuance and sale of 69.1 million shares to investors.

Consensys will lead the sales offering, with participation from venture capital firms such as Pantera Capital, ParaFi Capital, Galaxy Digital, and Ondo. The sale is expected to generate $425 million, which Sharplink intends to use to purchase Ether as part of its new treasury strategy.

The ETH treasury will take effect after the private placement closes on Thursday. Following the closure, Consensys CEO and Ethereum co-founder Joseph Lubin will join Sharplink’s Board of Directors as Chairman.

“Upon closing, Consensys looks forward to partnering with SharpLink to explore and develop a treasury strategy in Ethereum and work with them on their core business as a strategic advisor,” said Lubin in the press release.

Sharplink is not the first company to adopt an Ethereum treasury plan. Healthcare firm BioNexus Gene Lab (BGLC) announced in March that it would add ETH as a treasury asset. Blockchain-based BTCS, listed on Nasdaq, also announced a purchase of $8.42 million in ETH last week, increasing its total holdings to 12,500 ETH.

This development occurs as more corporate entities lean towards digital asset treasury strategies, particularly for Bitcoin (BTC) and Solana (SOL). These tokens have seen increased institutional exposure in recent months, with companies like Strategy and DeFi Development Corp consistently buying BTC and SOL, driving up market demand. Consequently, both tokens have significantly outperformed ETH in the past year.

However, Sharplink’s $425 million buying pressure could provide a boost for ETH.

Additionally, Etherealize, co-founded by Vivek Raman, is working to demonstrate the advantages of the Ethereum ecosystem to traditional finance institutions, ETF issuers, and the public. The company prioritizes developing tools that promote Ethereum’s application in financial markets, focusing on tokenization and secure asset trading.

Ethereum Price Analysis: Resistance Looms

Ethereum experienced $68.43 million in futures liquidations in the last 24 hours, according to Coinglass data. Total long and short liquidations amounted to $22.53 million and $45.89 million, respectively.

Since reclaiming the lower boundary of a symmetrical triangle on the weekly chart, ETH has struggled near the resistance range between $2,750 and $2,850, a key level where bears have historically exerted selling pressure.

If ETH can sustain a high-volume bullish move to convert $2,850 into a support level, it could rise to test the upper boundary of the symmetrical triangle. However, it must first clear the $3,250 resistance to achieve such a move.

On the downside, ETH could find support near the $2,500 level or the lower boundary of the triangle. A drop below this level could bring the support range between $2,250 and $2,100 into focus.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) histogram bars are above their neutral levels, indicating dominant bullish momentum. Meanwhile, the Stochastic Oscillator (Stoch) has slightly tilted towards its overbought region, signaling an increased chance of a short-term pullback.