SharpLink Gaming To Raise $425 Mln Through PIPE For Ethereum Treasury Strategy With Consensys

(RTTNews) - SharpLink Gaming, Inc. (SBET) shares are surging on Tuesday after announcement of a definitive agreements for $425 million private placement to support an Ethereum Treasury Strategy.

The financing, structured as a Private Investment in Public Equity or PIPE will involve the sale of 69.1 million shares at $6.15 each or $6.72 for insiders. The lead investor is Consensys Software Inc., the Ethereum infrastructure firm founded by Joseph Lubin, who is also a co-founder of Ethereum.

Additional participation will be from major crypto investors including Pantera Capital, Galaxy Digital, Electric Capital, ParaFi, and Arrington Capital, among others.

Proceeds will be primarily used to acquire ETH or Ethereum, which will become SharpLink's primary treasury reserve asset, marking a significant strategic shift into blockchain finance.

The company also plans to use funds for general corporate purposes and working capital needs.

As part of the agreement, Joseph Lubin will join SharpLink as Chairman of the Board upon closing of the deal, expected by May 29, 2025.

Consensys will act as a strategic advisor to SharpLink in developing its Ethereum Treasury Strategy and exploring Web3 integrations with its core iGaming business.

Currently, SBET is trading at $33.75, up by 400.94 percent on the Nasdaq.