"SharpLink Launches Ethereum Treasury, Joe Lubin Named Board Chair"

SharpLink Launches Ethereum Treasury, Taps Joe Lubin as Board Chair

Betting platform SharpLink Gaming made waves in the cryptocurrency world by launching an Ethereum-based corporate treasury strategy and appointing Ethereum co-founder Joseph Lubin as the chairman of its board of directors. This groundbreaking move was announced on May 27.

According to the announcement, SharpLink Gaming, a publicly traded company on Nasdaq, secured a significant private investment in public equity worth $425 million. Notably, Ethereum infrastructure firm Consensys was among the investors involved in this strategic move.

In a statement, Consensys founder and CEO Joseph Lubin expressed his excitement about the partnership, stating, "On close, Consensys looks forward to partnering with SharpLink to explore and develop an Ethereum Treasury Strategy and to work with them in their core business as a strategic advisor."

SharpLink Gaming's stock soared by approximately 400% following the announcement, reaching nearly $33.50 per share. This sharp increase came after the stock closed at under $7 the previous day.

A representative from Consensys revealed to Cointelegraph that the company will refrain from providing further comments until the deal is finalized. However, they did confirm Consensys' substantial investment in SharpLink Gaming.

Major Investors Participate in the Deal

Aside from Consensys, a range of prominent venture capital firms and individuals joined forces as investors in the deal. These entities include ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, and Primitive Ventures. The CEOs of SharpLink Gaming, Rob Phythian and Robert DeLucia, also contributed to the investment.

The deal is set to close "on or about May 29," pending the fulfillment of customary closing conditions. SharpLink Gaming plans to utilize the newly raised funds to kickstart its Ether (ETH) treasury and for other general corporate purposes, with plans for ETH to serve as the company's primary treasury reserve asset.

The Rise of Corporate Crypto Treasuries

The trend of corporate crypto treasuries is gaining momentum, with Bitcoin (BTC) often being the focal point. However, there have been some notable exceptions, such as Meitu, the developer of popular apps, which previously held Bitcoin and Ether but liquidated its holdings at the end of last year.

Other significant examples include the Canadian arm of audit giant KPMG that added Ether to its treasury alongside Bitcoin in February 2022. Similarly, Hong Kong-based gaming company Boyaa Interactive International once held Ether in its treasury but switched to Bitcoin by the end of 2024.

Social media powerhouse Reddit also dabbled in both Bitcoin and Ethereum but reportedly offloaded most of its holdings towards the end of 2024. Additionally, publicly traded company BTCS recently announced a substantial financing agreement worth $57.8 million to acquire Ether.

The trend of corporates diversifying their treasuries with cryptocurrency assets continues to evolve, reflecting a broader adoption of digital assets in traditional finance and corporate strategies.