SharpLink Stock Falls 30% After Surging 2,000% in Previous Week

SharpLink Gaming (SBET) announced Monday that it has successfully closed a $450 million capital raise, aimed at acquiring Ethereum (ETH) to add to its treasury reserves.

Shares of SharpLink slipped 30% in early trading Monday, easing some of the wild gains from last week when the stock surged an astonishing 2,000%.

The massive rally — which saw shares soar from under $3 to above $100 briefly — followed the announcement of the fundraising and the addition of Ethereum co-founder Joseph Lubin as chairman of SharpLink’s board.

The company issued 69 million new shares as part of the capital raise. However, pharmaceutical entrepreneur Martin Shkreli highlighted that most of these shares are currently restricted. “The 69 million shares are subject to a registration rights agreement and won’t be freely tradable for several months. Only 2 million shares are available for trading right now,” he explained.

New shares issued in private placements typically come with resale restrictions until the company completes the regulatory filing process, known as registration. This often takes months and limits the number of shares available on the open market, increasing price volatility.

SharpLink’s public float — the shares actually available to trade — remains very small. This limited availability likely helped drive the dramatic price spike last week as eager investors rushed in.

Now, following the successful fundraising and the high-profile board appointment, the stock has pulled back somewhat, reflecting a natural market correction after the extraordinary rally.