 has increased its Ethereum holdings to 837,230 ETH valued at $3.6 billion, highlighting its aggressive treasury strategy backed by capital market access.){kind=link}
SharpLink Gaming (NASDAQ: SBET) has increased its crypto holdings, announcing the purchase of 39,008 Ethereum (ETH) at a price per token of approximately $4,531.
The purchase takes the company’s total of ETH to 837,230, valued at around $3.6 billion.
The new purchase represents an increase of 4.9% in SharpLink’s Ethereum position in just one week, emphasizing the company’s strong commitment to creating one of the largest corporate treasuries in the crypto space.
Financing the Accumulation Through Capital Market Access
In order to raise the capital to finance this latest purchase, SharpLink was able to raise $46.6 million through its At-The-Market (ATM) facility by issuing 2.4 million equity shares to investors.
While this is considered a smaller raise than previous weeks, such as the $360.9 million raised in early summer, it demonstrates the company’s continuing access to capital markets for its crypto acquisition strategy.
This provides SharpLink an opportunity to grow its Ethereum position without relying solely on its internal reserves, but of course, there is a dilution cost to shareholders for this digital asset’s upside gain.
ETH Concentration Metric Jumps Nearly 100% Since June
One of the key performance indicators SharpLink monitors is ETH Concentration, which measures ETH holdings per 1,000 diluted shares.
This number has increased to 3.94 as of August 31, a 97% growth since the company launched its Ethereum treasury operation in June.
ETH Concentration suggests that the company is successfully growing its ETH holdings faster than the dilution of new share issuances.
This means that more ETH is attributable to each share, which further legitimizes claims that the company is focusing on Ethereum as its main reserve asset.
Also Read: Former BlackRock Exec Joseph Chalom Appointed as Co-CEO of SharpLink
Staking Rewards Add Passive Income Stream
In addition to purchasing ETH directly, SharpLink was still earning passive income through staking.
This past week, the company earned 500 ETH in staking rewards, bringing its total staking rewards to 2,318 ETH since it started the program in June.
The company has more than $71.6 million in cash and equivalents, providing it with considerable flexibility to continue purchasing more ETH in the future while earning ongoing staking yields.
The company’s ongoing accumulation of ETH and earned staking yields adds a layer of complexity to its strategy for long-term treasury growth.
SharpLink Emerges as a Leading Corporate ETH Holder
SharpLink’s constant purchases of Ethereum have established it as one of the leading corporate holders of Ethereum in the world, being a decisive break from the old days of cash-exposed treasuries.
By continuing to adhere to a disciplined weekly accumulation pattern, the company appears confident in ETH’s long-term value, despite the price fluctuations.Â
Similar to others who have aimed high when it comes to crypto, including Strategy, which announced the purchase of 4,048 Bitcoin (BTC) valued at $449.3 million.
This was on the heels of Strategy reporting more than $46.9 billion worth of BTC on its books, making it the largest corporate holder of BTC.
SharpLink is trailblazing its way to becoming Ethereum’s equivalent in the corporate sector.