SharpLink Gaming is forging ahead with its Ethereum Reserve treasury plans, having closed its private placement deal. The company intends to use the proceeds to buy ETH, while it has also revealed plans to raise up to $1 billion in the future as it looks to become the public company with the largest Ethereum holdings.
SharpLink Gaming Closes $425 Million Private Placement Deal
In a press release, SharpLink Gaming announced that it has closed the $425 million private placement led by Consensys Software and other investors to help the company implement the largest Ethereum treasury strategy in the public markets. According to a Reuters report,
CoinGape had earlier reported the company’s plans to raise $425 million to fund its ETH accumulation strategy. The company effectively sold some of its common stock to raise this sum.
Following the close of the deal, Joseph Lubin, the founder and CEO of Consensys, has emerged as the Chairman of the board of directors of the company. Meanwhile, it is worth mentioning that the private placement offering also included participation from prominent crypto VC firms like ParaFi Capital, Electric Capital, Pantera Capital, Galaxy Digital, among others.
SharpLink remarked that this announcement marks a key milestone in its growth strategy, as it will enable them to adopt ETH as their primary treasury reserve asset, while also continuing to focus on its core business operations.
As CoinGape reported, the company has also filed a $1 billion shelf offering and plans to use this sum to expand its Ethereum treasury in the future. This exposure to ETH will enable the company to participate actively in activities such as staking in the Ethereum ecosystem. ParaFi and Galaxy Asset Management will help provide custody services for the ETH treasury.
Consensys Comments On Private Placement Deal
In a press release, Consensys commented on the private placement deal. The firm stated that SharpLink is a public company that aligns with their vision of Ethereum as a new kind of economic infrastructure forming the trust layer of the internet.
Lubin’s company further remarked that the SharpLink’s use of proceeds to purchase ETH reflects their “shared, deep confidence in Ethereum as the foundation of a programmable global economy.” Consensys believes that Ethereum, and its robust economy for staking, restaking, and decentralized finance, presents “structurally superior opportunities” for SBET in both treasury management and ecosystem growth.
BTCS is another company that is looking to lead the way with its Ethereum strategy. As CoinGape reported, the company just acquired 1,000 ETH, bringing its total holdings to 13,500.
ETH accumulation is on the rise, with corporate firms and institutional investors buying the altcoin. Ethereum exchange supply has also hit a 7-year low amid this rising corporate accumulation.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
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