SharpLink Gaming, a leading US-based digital marketing solutions provider to the sports betting and iGaming sectors, made a huge strategic move on Tuesday. The company has announced that it has raised a $425 million private placement. The capital raise is geared to make Ethereum (ETH) the firm’s main treasury asset. This represents a bold push into the crypto and blockchain sector.
The firm released intentions to use all proceeds to buy ETH, the native token of the Ethereum blockchain. This is SharpLink’s bid to tap into blockchain solutions in financial management. They wish to achieve this while keeping a focus on their digital marketing solutions for the gaming and betting industries.
“This is a major milestone for SharpLink’s path and represents a growth outside our core business,” commented Rob Phythian, SharpLink’s Founder and CEO. “Upon closing, we look forward to collaborating with Consensys and welcoming Joseph to the Board.”
Private placement is guided by Consensys Software Inc., a blockchain technology giant established by Ethereum co-founder Joseph Lubin. The other prominent participants are Pantera Capital, ParaFi Capital, Electric Capital, Galaxy Digital, Arrington Capital, and Republic Digital—some of the most powerful investment companies in the crypto community.
SharpLink signed securities purchase agreements to sell about 69.1 million shares at $6.15 per share, a slightly higher rate of $6.72 for select members of the management team. Closing is anticipated by May 29, 2025.
CEO Rob Phythian and CFO Robert DeLucia are also investing personally in the round, which demonstrates a high level of insider confidence in the direction of the company.
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As part of the deal, Joseph Lubin will join SharpLink’s Board of Directors as Chairman upon closing. Lubin expressed optimism about the company’s new trajectory.
“This is an exciting time for the Ethereum community, and I am delighted to work with Rob and the team to bring the Ethereum opportunity to public markets,” said Lubin.
The sale is private and is being conducted under Section 4(a)(2) of the Securities Act and Regulation D. This exempts it from general SEC registration requirements. But SharpLink has pledged to file registration statements shortly, enabling resale by the public to resell the newly issued shares.
AGP/Alliance Global Partners is acting as the exclusive placement agent for the offering, further emphasizing the institutional support behind SharpLink’s crypto-forward approach.