SharpLink Gaming Shares Dive 70% After SEC Registration Allows PIPE Share Sales — Could a Major ETH Buy Be Imminent?
SharpLink Gaming (NASDAQ: SBET), known for its Ethereum (ETH) treasury strategy, saw its stock price plunge by 70% in after-hours trading on Thursday following a key regulatory filing.
The company filed an S-3ASR registration statement that permits the resale of nearly 59 million shares from its recent private investment in public equity (PIPE) round. This unlocks a large volume of shares held by over 100 PIPE investors, likely triggering the heavy post-market selling.
Charles Allen, CEO of crypto treasury firm BTCS, explained on X and in a CoinDesk interview that this move probably caused the sudden stock decline.
SharpLink raised $450 million earlier this month from major investors like ConsenSys, Galaxy Digital, and Pantera Capital. Notably, Ethereum co-founder and ConsenSys CEO Joseph Lubin joined SharpLink’s board as chairman, underscoring its commitment to an ETH-focused treasury.
Allen hinted that despite the sharp sell-off, SharpLink might be gearing up for a substantial ETH purchase—potentially as much as $1 billion—via an at-the-market (ATM) offering filed with the SEC at the end of May.
“If they time it right, a surprise announcement of $1 billion in ETH acquisitions could spark a strong recovery in the stock,” Allen said.
Meanwhile, Ethereum’s price declined approximately 4.1% over 24 hours, hovering near $2,650 amid broader crypto market weakness alongside Bitcoin.
