 shares plummeted 73% in after-hours trading Thursday following regulatory filings revealing plans for a massive securities){kind=link}
SharpLink Gaming (NASDAQ: SBET) shares plummeted 73% in after-hours trading Thursday following regulatory filings revealing plans for a massive securities offering, while simultaneously preparing for a potential $1 billion Ethereum acquisition strategy. The gaming technology company’s stock fell to $9 per share after closing at $37.07 on June 11, 2025, wiping out nearly three-quarters of its market value overnight.
The dramatic selloff occurred hours after SharpLink filed a prospectus detailing plans to offer 58.7 million common shares and warrants for 16.6 million additional shares. This development comes just two weeks after the company announced plans to allocate significant capital to Ethereum reserves, creating conflicting signals about its financial strategy.
Install Coin Push to get profitable crypto trading notifications.
SharpLink’s Financial Turbulence
The Minnesota-based gaming firm’s regulatory filing reveals four distinct financial instruments in play:
- 58,699,760 common shares from a completed PIPE offering
- 10.4 million pre-funded warrants at $0.0001 exercise price
- 3.45 million strategic advisor warrants priced between $6.15-$7.995
- 2.76 million placement agent warrants at $7.688 each
Notably, SharpLink stands to gain $23.8 million if all strategic advisor warrants are exercised, while placement agent warrants could generate $21.2 million. The company confirmed it won’t receive proceeds from common stock sales, creating investor concerns about dilution.
Ethereum Reserve Strategy
SharpLink’s ETH reserve strategy, first announced in Q1 2025, proposes converting up to 30% of cash reserves into Ethereum. While not explicitly mentioned in the latest filings, company insiders suggest the warrant proceeds could fund this digital asset acquisition.
The proposed $1 billion Ethereum buy would represent one of the largest corporate crypto acquisitions since MicroStrategy’s Bitcoin treasury moves. However, the timing raises questions given SharpLink’s current cash position of $47.6 million reported in May 2025.
Market Reactions and Analysis
Trading volume plummeted 81% to 2.14 billion shares on June 2, 2025, preceding the current collapse. The stock has now lost 58.93% of its value over 10 trading days, with technical analysis suggesting potential volatility between $23.12 and $160.66 within three months.
Financial analysts at AInvest note the 27.81% single-day drop on June 2 marked the beginning of this downward spiral. The company’s market ranking fell to 460th position among NASDAQ listings, down from 312th in May 2025.
SharpLink’s restructuring plan focuses on operational efficiency and high-margin products, but investors appear skeptical. The simultaneous pursuit of equity dilution and crypto accumulation creates strategic ambiguity that markets have punished harshly.
Industry observers point to parallels with other companies that faced backlash for mixing traditional financing with crypto strategies. The $1B Ethereum plan would require massive capital infusion beyond current resources, suggesting either aggressive fundraising or debt financing.
Market makers note the extreme 22.58% intraday price swing on June 12, with shares bouncing between $30.33 and $37.18 before settling at $32.53. This volatility exceeds typical fluctuations for gaming sector stocks.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
Market Impact and Outlook
The SharpLink collapse has sent shockwaves through crypto-linked equities, particularly affecting gaming and entertainment stocks with digital asset exposure. Traders are now re-evaluating companies combining traditional financing with cryptocurrency strategies.
- PIPE Offering
- Private Investment in Public Equity – a capital-raising method where investors buy shares at a discount to market price.
- Pre-funded Warrants
- Financial instruments allowing immediate exercise with minimal cash outlay, typically used to circumvent regulatory restrictions.
- ETH Reserve Strategy
- A corporate treasury approach allocating portion of cash reserves to Ethereum, mirroring Bitcoin accumulation strategies.
- Placement Agent Warrants
- Compensation securities given to financial intermediaries for facilitating capital raises, often containing favorable exercise terms.
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.
Feel free to “borrow” this article — just don’t forget to link back to the original.
Editor-in-Chief / Coin Push Dean is a crypto enthusiast based in Amsterdam, where he follows every twist and turn in the world of cryptocurrencies and Web3.