SharpLink Gaming (NASDAQ: SBET), a Minneapolis-based sports marketing firm, experienced a dramatic 412% increase in its stock price on Tuesday following its announcement of a new Ethereum treasury reserve strategy.
The company, which has been trading around $7 last Friday, closed at $34.45, boosting its market capitalization to approximately $23 million.
SharpLink is in the process of raising $425 million through a private investment in public equity (PIPE) offering. The proceeds will be used primarily to acquire ether (ETH), positioning it as the company’s main treasury reserve asset.
Leading the investment round is Consensys, the Ethereum software firm co-founded by Joseph Lubin, who will join SharpLink’s board as chairman upon closing. Other investors include Pantera Capital, Galaxy Digital, and Ondo.
The offering is expected to close on May 29, marking a significant strategic pivot for the company as it joins a growing number of microcap firms adopting cryptocurrency treasury strategies inspired by MicroStrategy’s landmark bitcoin treasury success.
In a related development, Trump Media & Technology Group (DJT) announced a $2.5 billion capital raise on Tuesday to pursue its own bitcoin treasury initiative.
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