Golden Finance reported that on May 31st, the US-listed company SharpLink Gaming made frequent moves and caused another stir in the cryptocurrency field. The company submitted the Form S-3 ASR document to the U.S. Securities and Exchange Commission (SEC), and at the same time has been in contact with A.G.P. An ATM (issued at market price) sales agreement was signed. According to this agreement, SharpLink Gaming can be accessed through A.G.P. Issue and sell common stocks with a total amount of up to 1 billion US dollars.
In terms of the use of funds, the company has clearly stated that the vast majority of the proceeds from this issuance will be used to purchase the native cryptocurrency ETH of the Ethereum blockchain. In addition, it is planned to use the proceeds from this issuance for working capital requirements, general corporate purposes, and operating expenses, etc. This move demonstrates SharpLink Gaming’s firm determination in the layout of crypto assets.
Looking back at previous news, SharpLink Gaming announced on May 27th that it had signed a securities purchase agreement and made a private equity investment of 425 million US dollars. This round of private equity investment is quite remarkable and was made by Consensys Software Inc. Led by the main investor, the participants include a number of well-known crypto venture Capital institutions such as ParaFi Capital, Electric Capital, Pantera Capital and Galaxy Digital. The transaction is expected to be completed on May 29th. At that time, the company had already indicated that this round of financing would mainly be used to purchase ETH, and in the future, ETH would become the main Treasury reserve asset of SharpLink.
SharpLink Gaming was founded on December 27, 1995. It is a company in Delaware. Originally, it was a leading online technology company dedicated to connecting sports fans, leagues and sports websites with relevant and timely sports betting content. With its proprietary intelligent online conversion technology, it can transform sports fans into sports betting players of licensed online sports betting operators. Through complex, AI-supported behavioral modeling and tracking technologies, it provides personalized betting offers for sports fans. Nowadays, the company has made a significant shift in its business strategy and is actively venturing into the cryptocurrency sector, which has drawn widespread attention from the market.
Judging from the market reaction, after announcing a $425 million private equity investment plan, the share price of SharpLink Gaming witnessed an astonishing increase on May 27th, with an increase of more than 483%. After the news that the company plans to raise 1 billion US dollars to continue increasing its holdings of ETH was released, it once again sparked heated discussions in the market.
Some market analysts believe that SharpLink Gaming’s continuous layout of ETH, on the one hand, shows the company’s high recognition of the future development potential of the Ethereum ecosystem. With the advancement of Ethereum 2.0 and the continuous expansion of its applications in fields such as smart contracts and decentralized finance (DeFi), the value of ETH is expected to increase further. On the other hand, this series of actions by the company may also affect the flow of funds in the cryptocurrency market to a certain extent, attracting more investors to pay attention to Ethereum and related crypto assets.
However, the cryptocurrency market has always been highly volatile, and the price of ETH also faces many uncertainties. SharpLink Gaming’s large-scale investment in purchasing ETH also faces certain risks. The specific progress of its subsequent increase in ETH holdings and its impact on the company’s financial situation and market performance, All will continue to be closely watched by the market.
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