SharpLink Gaming Shares Plunge Over 90% After $463M Ethereum Treasury Shift

SharpLink Gaming, a Nasdaq-listed company chaired by Ethereum co-founder Joseph Lubin, has made a significant move by acquiring over 176,000 Ether (ETH) worth approximately $463 million, making it the largest public holder of ETH. The company has staked more than 95% of its ETH holdings to generate yield and support Ethereum's network security, signaling a strong institutional bet on Ethereum's long-term value and utility. Despite this strategic pivot towards crypto, SharpLink's stock plunged sharply—over 65% in pre-market trading and up to 91% from recent highs—amid investor concerns over the volatility of digital assets, sudden capital allocation shifts, and large share resales linked to its capital raises. The sell-off was exacerbated by an SEC filing allowing the resale of nearly 59 million shares from a private investment round, leading to fears of market flooding, although company representatives have downplayed panic as misinformation. Some analysts and market observers speculate that SharpLink might be preparing for even larger ETH purchases, potentially up to $1 billion, which could stabilize or revive the stock. Overall, SharpLink’s aggressive ETH treasury strategy highlights both growing institutional adoption of Ethereum and the significant market risks inherent in such bold crypto investments.