SharpLink Acquires $462.9 Million in Ethereum, Becomes Largest Public ETH Holder
SharpLink Gaming (SBET) has made a significant move in the cryptocurrency world, announcing the purchase of 176,270.69 ETH for a total of $462.9 million. This acquisition positions the company as the largest publicly traded holder of Ethereum.
- SharpLink now holds 176,270.69 ETH, valued at $462.9 million.
- The company is the largest public holder of ETH.
- 95% of SharpLink’s ETH holdings are staked.
Despite this substantial investment, Ethereum (ETH) experienced a 6% decline on Friday, influenced by geopolitical tensions in the Middle East following Israeli strikes in Iran.
SharpLink’s $463 Million ETH Purchase
The Nasdaq-listed SharpLink Gaming revealed that it acquired the ETH at an average price of $2,626 per coin. The purchase was funded through a combination of private placements and at-the-market (ATM) equity offerings.
SharpLink has already staked over 95% of its acquired ETH, aiming to earn yield while contributing to the security and decentralization of the Ethereum network.
“By allocating significant capital to ETH and deploying it in network activities like staking, SharpLink is contributing both to the long-term security of Ethereum and its trust properties, while earning additional ETH for that work,” said Joseph Lubin, Chairman of SharpLink and CEO of Consensys.
This purchase follows SharpLink’s recent filing with the Securities and Exchange Commission (SEC) for the potential resale of over 58 million shares after a $1 billion offering in May. Lubin clarified that the filing was a standard procedure and not indicative of actual sales.
Despite the ETH purchase, SharpLink’s stock has fallen by 66% on Friday.
This strategic shift towards ETH as a treasury asset comes at a pivotal time for the Ethereum network. Recent developments in cryptocurrency regulations, the tokenization of real-world assets, and a potentially more favorable stance from the SEC towards decentralized finance (DeFi) are all impacting the Ethereum ecosystem.
According to Chung, the SEC’s evolving perspective on DeFi could encourage institutions to gain exposure to the sector, transforming Ethereum into an “indispensable infrastructure” for on-chain financial systems.
“Ethereum is no longer just a ‘crypto’ story… It’s about industrial-grade programmable money systems. And Ethereum is leading the charge,” Chung stated.
Despite these positive developments and SharpLink’s significant purchase, ETH continues to face downward pressure due to ongoing geopolitical uncertainties.
Ethereum Price Forecast: Potential Drop to $2,260
Ethereum experienced $296 million in futures liquidations, with $239.09 million in long liquidations and $57.77 million in short liquidations over the past 24 hours.
After facing resistance near $2,850, ETH has declined by approximately 12%, briefly dipping below the $2,500 level before finding support near the 38.2% Fibonacci retracement level around $2,450 on Friday.
If ETH fails to maintain the $2,500 level and the 38.2% Fibonacci retracement, it could find support near the lower boundary of a key channel, reinforced by the 50-day Simple Moving Average (SMA). A break below this level could send the price to the $2,110-$2,260 range, with the 100-day SMA just below.
Conversely, ETH needs to move above the $2,850 resistance to initiate an upward trend towards the $3,400 level.
The Relative Strength Index (RSI) has fallen below its moving average line and is testing its neutral level. The Stochastic Oscillator (Stoch) is below its neutral level and trending towards its oversold region. A successful break below these key levels in both indicators could fuel further bearish momentum.
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