SharpLink Buys $76M in Ethereum — But SBET Stock Price Still Stuck Near Lows

SharpLink Gaming, Inc. (NASDAQ: SBET) has made headlines by purchasing a staggering $76 million worth of Ethereum (ETH) for its corporate treasury. In a bold move that aligns it more with a digital asset holding vehicle than a traditional gaming tech company, SharpLink acquired over 19,000 ETH in a single week—bringing its total holdings to nearly 860,000 ETH. This places the firm among the largest corporate holders of Ether in the world. The acquisition is a clear signal of the company’s conviction in Ethereum’s long-term value and its strategic pivot toward becoming an active participant in the blockchain economy.

Yet, despite the magnitude of the investment and the growing value of its crypto treasury—now estimated at over $3.5 billion—SharpLink’s stock price remains surprisingly stagnant. SBET shares continue to hover in the mid-teens, far from the highs seen earlier this year when the Ethereum pivot was first announced. The disconnect between the firm’s rapidly expanding digital asset holdings and its struggling stock price has left investors wondering: is this a hidden gem waiting to rally, or a cautionary tale about hype outpacing fundamentals?

What Is SharpLink Gaming, Inc. (SBET)?

SharpLink Gaming, Inc. began as a digital marketing and technology provider for the online sports betting and fantasy sports industries. The company originally focused on helping sportsbooks acquire users through affiliate marketing, content syndication, and data-driven engagement tools. Headquartered in Minneapolis, SharpLink catered primarily to operators and media groups looking to monetize sports fans through wagering content. Its business model relied heavily on lead generation, white-label platforms, and performance-based marketing partnerships.

However, in 2025, the company took a dramatic turn. Following a significant recapitalization and leadership overhaul, SharpLink repositioned itself as a digital asset treasury operator with a sharp focus on Ethereum. The pivot was spearheaded by a $425 million private placement round led by ConsenSys—an Ethereum infrastructure firm co-founded by Joseph Lubin, who also assumed the role of SharpLink’s Chairman of the Board. The company now identifies more with MicroStrategy’s Bitcoin-centric strategy, but with Ethereum at its core. SharpLink’s stated mission is to deliver shareholder value through disciplined ETH accumulation, staking, and other yield-generating activities on-chain. It has essentially transformed from a sports betting affiliate into one of the largest Ethereum-backed public companies in the world.

From Capital to Crypto: How SharpLink Spent $76M on Ethereum

SharpLink’s latest Ethereum purchase wasn’t just a routine accumulation—it was a calculated deployment of fresh capital aimed at reinforcing its identity as a crypto-centric public company. In October 2025, SharpLink raised $76.5 million through a direct equity offering, issuing 4.5 million shares at $17 apiece. Within days, the company used those proceeds to buy 19,271 ETH at an average price of $3,892, marking its first Ethereum acquisition in over a month. The purchase brought its total ETH holdings to 859,853 ETH, valued at over $3.5 billion, alongside an additional $36 million in cash reserves.

But this was more than a balance sheet maneuver. Management emphasized that the transaction was “immediately accretive to shareholders,” as it raised funds at a premium to the company’s net asset value and reinvested them during a brief dip in the ETH market. SharpLink isn’t simply holding crypto—it’s putting it to work. Nearly all of its ETH is actively staked, generating yield and supporting Ethereum’s proof-of-stake consensus mechanism. Since launching its treasury strategy earlier this year, the firm has earned 5,671 ETH in staking rewards—equivalent to about $22 million at current prices. Looking ahead, SharpLink is also exploring restaking protocols and carefully managed DeFi strategies to further enhance yield, signaling its intention to act not just as a digital vault, but as an active participant in the Ethereum ecosystem.

Why SBET Stock Price Remains Depressed

Given the size and scope of SharpLink’s Ethereum holdings, one might expect its stock price to reflect that crypto-fueled balance sheet. But that hasn’t been the case. Despite acquiring over $3.5 billion in ETH, SBET shares remain near their recent lows, trading around $14–$15. That’s a steep decline from the stock’s highs earlier in 2025, when enthusiasm for the firm’s Ethereum pivot briefly pushed SBET above $45. In fact, shares are down almost 90% from their May peak and more than 60% off their July highs, even after the headline-grabbing $76M ETH purchase.

So what’s holding the stock back? A combination of factors is fueling investor hesitation. First, the dilutive effect of SharpLink’s repeated equity raises has weighed on sentiment. Issuing millions of new shares to buy ETH has increased the company’s asset base but also spread shareholder value thinner. Second, some investors remain skeptical about whether SharpLink’s Ethereum treasury strategy—while innovative—can deliver consistent returns or long-term growth beyond crypto price appreciation. Unlike traditional operating companies, SharpLink now functions more like a crypto fund than a revenue-generating business, which can be hard to value in conventional terms.

Adding to the complexity is the volatility of Ethereum itself. As ETH prices whipsaw with broader crypto sentiment, SharpLink’s net asset value—and perceived stability—fluctuates in tandem. And while the company has earned over 5,600 ETH in staking rewards, that income isn’t yet enough to offset the perception that SharpLink’s fortunes hinge entirely on Ethereum’s market performance. Moreover, the firm straddles two regulatory fault lines: digital assets and its legacy in online betting. This dual exposure invites scrutiny and caution from traditional equity investors.

SBET Stock Price Prediction: Where Could It Go Next?

SBET Stock Price

Source: Yahoo Finance

With nearly 860,000 ETH on the books and a market cap hovering around $2.7 billion, SharpLink’s stock trades at a discount to its underlying assets—a rare situation in public markets. This disconnect has prompted analysts and crypto investors alike to question whether SBET is undervalued, misunderstood, or simply reflecting appropriate caution given its unorthodox strategy.

Several Wall Street firms have initiated coverage on SBET, with price targets ranging from $30 to $50, depending on assumptions about Ethereum’s price trajectory and the company’s treasury yield performance. These forecasts imply significant upside from current levels—more than 2x from the stock’s current trading range. Much of the bullish sentiment rests on a simple thesis: as Ethereum rises, so should SharpLink. Some analysts have even labeled it the “MicroStrategy of Ethereum,” drawing parallels to how MicroStrategy’s Bitcoin accumulation eventually lifted its stock value once markets recognized the embedded crypto exposure.

On the technical side, SBET has established short-term support near the $13.50–$14 range, with resistance levels seen around $17.50 and $22, based on post-raise trading volumes and past reversal points. Should ETH prices surge above $4,500—and hold—SBET may test those upper ranges. Conversely, a sustained drop in Ethereum could place further pressure on the stock, especially if SharpLink opts to raise more capital.

It’s also worth noting that staking rewards and DeFi yield strategies could become more meaningful over time. If the company can demonstrate that it’s not just a passive holder but an active ETH yield optimizer, investors may begin to assign a premium to its performance rather than a discount for perceived crypto risk.

Conclusion

SharpLink’s transformation into a crypto-centric treasury firm is a bold and unconventional move in public markets. With nearly $3.5 billion in Ethereum holdings, an active staking strategy, and ambitions to extract more value through DeFi protocols, the company is clearly betting big on ETH as a long-term store of value and growth engine. Its latest $76 million purchase only solidifies that position. Yet despite the size of its digital war chest, SBET stock remains stubbornly low—reflecting skepticism around dilution, crypto volatility, and the long-term viability of its business model.

For investors, SBET represents a high-conviction Ethereum play in equity form, with significant upside potential if the crypto market surges or if the company demonstrates strong treasury performance. But the risks remain real—especially in an environment where crypto markets remain volatile and sentiment is fragile. As SharpLink continues to navigate this hybrid space between digital assets and public equities, its success may ultimately hinge on whether it can convince traditional investors to see ETH not just as a speculative asset, but as a strategic reserve worth betting on.