Sharplink Crash Triggers Confusion Over Ether Treasury Play

This filing increased investor fears despite reassurances from executives that no actual sales occurred. The drop came shortly after Sharplink revealed plans to raise $1 billion to purchase Ethereum as part of its blockchain treasury strategy. GameStop also saw a post-earnings dip as Q1 revenue missed expectations. Despite gaming share drops, there is still interest in gaming companies. Tencent is reportedly exploring a potential acquisition of Nexon, which recently launched Web3 versions of MapleStory. However, the discussions are still in the early stages, and no formal agreement has been made. Sharplink Crashes as Market Misreads Filing Shares in sports betting platform Sharplink Gaming plummeted by 67% in after-hours trading on Thursday after the company’s filing to register nearly 58.7 million shares for potential resale. This very clearly caused some concern among investors. The sharp decline followed a 12.25% drop in the stock’s regular trading hours, closing at $32.53 before briefly plunging below $8. It later stabilized somewhat by trading at $10.55. Sharplink Gaming share price over the past 24 hours (Source: Google Finance ) The market reaction was driven by confusion over the nature of the filing. Joseph Lubin, chairman of Sharplink Gaming and CEO of blockchain software company Consensys, took to social media to clarify that the Form S-3 filing with the US Securities and Exchange Commission (SEC) was standard practice and does not signal that any actual sales of shares took place. He explained that the filing is a procedural step after a private investment in public equity (PIPE) deal and does not reflect current or imminent sales. Matt Corva , general counsel at Consensys, shared that the filing merely formalizes details that were already made public two weeks earlier. “It doesn’t reflect anyone’s sales, which may or may not ever happen,” Corva stated. He also mentioned that the filing confirms the previously announced sale of shares to investors, validating the company’s Ethereum-focused treasury strategy. Sharplink revealed on May 30 that it plans to raise up to $1 billion through a stock sale to fund a major Ethereum (ETH) acquisition as part of its new blockchain-based treasury strategy. Despite the clarification, the abrupt drop in share price proved that investors are very cautious of the large resale filings. Charles Allen , CEO of BTCS Inc., talked about the psychological impact such filings can have on shareholders. “This creates a prisoner’s dilemma,” he said, referencing the rush among investors to sell before others do. However, Allen speculated that the situation could turn around quickly if Sharplink follows through on its promise and announces the anticipated $1 billion Ether purchase soon. “If they played cards right,” he suggested, “this could be a brilliantly timed move to reignite investor confidence and the stock’s momentum.” GameStop Shares Slide After Mixed Q1 and Bitcoin Bet GameStop Corp (GME) shares also slipped in after-hours trading on Tuesday after the release of its first-quarter earnings , which painted a mixed picture of operational recovery despite declining revenue. The video game retailer reported $732.4 million in revenue for the quarter ending May 3. This fell short of analyst expectations of $754.2 million and was a 17% year-over-year decline. The company attributed the revenue drop to persistent headwinds in physical game sales. Overview of GameStop’s Q1 performance (Source: GameStop ) Despite the weaker top-line figure, GameStop recorded some improvements in profitability. Net income reached $44.8 million, a turnaround from a net loss of $32.3 million during the same period last year. Operating losses also narrowed to $10.8 million, compared to $50.6 million in Q1 of 2024. Still, the market reacted negatively to the revenue miss, with GME shares dropping more than 3.5% in after-hours trading to just above $29. GameStop share price over the past month (Source: Google Finance ) The company’s stock performance has been relatively stagnant over the past month and is down approximately 3.8% year-to-date. This modest decline comes shortly after GameStop entered the world of digital assets by confirming in late May that it purchased 4,710 Bitcoin (BTC), valued at around $513 million at the time. The firm said the Bitcoin acquisition was funded through a $1.3 billion convertible note offering. GameStop has not revealed just how much more Bitcoin it plans to purchase but indicated that it has some flexibility in its strategy. This means that it may sell its holdings if necessary. The company reported a robust $6.4 billion in cash, cash equivalents, and marketable securities, which is an impressive increase from $1 billion a year ago. This gives it more than enough firepower to expand its Bitcoin reserve in the future. Tencent Explores Nexon Deal Despite the recent gaming stock drops, there is still some interest in gaming companies. Tencent, one of China’s largest tech conglomerates, is reportedly in discussions to acquire South Korean game developer and publisher Nexon, the company behind the popular MapleStory franchise. According to a Bloomberg report , representatives from Tencent reached out to the family of Nexon founder Kim Jung-ju to explore a possible deal. However, the discussions are still in the early stages, and no formal agreement has been made. Nexon has long been a dominant force in the online gaming industry, and MapleStory gained massive popularity in the early 2000s. More recently, Nexon has been active in the Web3 gaming space by launching blockchain-integrated versions of its flagship series. In May of 2025, the company rolled out MapleStory N and MapleStory Universe, both of which allow players to earn and trade in-game items as non-fungible tokens (NFTs). Web3 gaming, while still a niche segment in the gaming industry, experienced a dramatic uptick in activity. A February 2025 report from DappRadar indicated that blockchain gaming saw a 368% year-over-year surge in January, driven in part by the popularity of games like Off The Grid — a AAA-quality shooter by Gunzilla Games — and anticipation around MapleStory N. These new titles aim to merge high-end graphics and gameplay with blockchain-based economies. This is a departure from earlier Web3 games that focused more on rewards and often lacked gameplay depth. (Source: DappRadar ) Despite this excitement, the sector still has to reach mainstream adoption. DappRadar reported a 10% drop in daily unique active wallets by early 2025, which suggests that the initial surge of interest may be tapering off. There are also still some challenges to overcome, including the complexity of setting up crypto wallets and widespread skepticism among traditional gamers, many of whom vsee monetization mechanics like play-to-earn with suspicion . While Tencent’s potential acquisition of Nexon could energize the Web3 gaming landscape, it also sheds some light on the sector’s ongoing struggle to balance innovation with accessibility and player trust.

Source: Coinpaper