SharpLink Gaming: Ethereum Strategy Brings Upside, But Dilution Clouds The Path
Summary
- SharpLink Gaming recently purchased 176,271 ETH for $463 million, positioning itself as the largest corporate holder of Ethereum, and effectively pivoting into a crypto treasury strategy similar to MicroStrategy’s.
- SBET faces significant dilution risk, with over 70 million potentially dilutive securities against a float of just ~2.3 million shares, contributing to recent sharp declines in its stock price.
- Despite the dilution overhang, SBET trades at just 1.19× its ETH per-share value, far below peers like MSTR and Metaplanet, suggesting a relatively fair valuation to underlying crypto assets.
- With low float, high volatility, and significant overhang from registered PIPE shares and an active $1B ATM shelf, short-term risks are elevated, but ETH bulls may see long-term upside.
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