SharpLink unlocks $6B in new capital to supercharge Ethereum buys

SharpLink has increased its share offering capacity from $1 billion to $6 billion to potentially fund more of its aggressive Ethereum (ETH) buys. In its updated prospectus filed with the US Securities and Exchange Commission on July 18, the company disclosed amendments to its previous May 30 registration. The latest filing raises the total amount of common stock that the company may sell under its at-the-market (ATM) program to $6 billion, up from the initial $1 billion. So far, the Joseph Lubin-backed firm has already sold approximately $720 million worth of shares under the earlier prospectus and may now offer up to $5 billion more under the amended agreement. The filing also includes an amendment to the company’s sales agreement with A.G.P./Alliance Global Partners, allowing for forward sales of its common stock. Compensation terms have been revised accordingly, with A.G.P. entitled to a 2.5% commission on the first $1 billion in sales, 2% on subsequent sales, and 4% for any forward transactions. According to the prospectus, SharpLink intends to allocate most of the proceeds to acquiring Ether (ETH), while also reserving some capital for working capital, general corporate purposes, and operational expenses. Although many in the crypto space view this as a bullish move for both the company and the world’s largest altcoin, shareholders have yet to reflect that optimism. SharpLink’s shares closed at $36.40 on July 17 before falling 4.95% to $34.60 in after-hours trading. That could change soon, however, given Ethereum’s strong performance over the past week, with the asset climbing more than 20% and breaking past key resistance levels. SharpLink could target 1% ETH supply SharpLink’s expanded fundraising push is expected to supercharge its Ethereum-focused treasury strategy. By significantly increasing the share sale limit, the company now has more headroom to purchase larger volumes of ETH in the coming months, with its treasury strategy seemingly aligned toward a long-term target of accumulating at least 1 million ETH in its balance sheet. If fully utilised at current prices, the new offering could give SharpLink control of nearly 1.38% of ETH’s circulating supply. Since launching its treasury program in June, SharpLink has consistently increased its ETH holdings in strategic tranches. The firm has already added $515 million worth of ETH in the past nine days, including a single-day buy of over 32,000 ETH. As of July 16, SharpLink held more than 280,000 ETH, with 99.7% of it staked to earn on-chain yield. Its latest purchases came shortly after raising $413 million through its ATM program in early July. Between June 2 and July 15, the company generated 415 ETH in staking rewards, valued at roughly $1.49 million at the time of disclosure. More than just a treasury asset SharpLink views ETH not just as a reserve asset but as working capital. Nearly all of its ETH is staked, with additional returns generated via restaking protocols. The company’s aggressive accumulation has drawn comparisons to institutional Bitcoin strategies seen in past years. However, unlike firms that opt for passive holding, SharpLink uses Ethereum’s native staking mechanisms to compound returns while maintaining high exposure to the asset’s long-term growth. Amid this backdrop is Ethereum’s newfound status as a corporate treasury asset. Companies like Bit Digital and BitMine Immersion have followed similar paths of late and have pivoted to ETH-centric reserve models. The post SharpLink unlocks $6B in new capital to supercharge Ethereum buys appeared first on Invezz

Source: Invezz