Companies are adding Bitcoin (BTCUSD) and Ethereum (ETHUSD) to their balance sheets for strategic reasons. Bitcoin serves as an inflation hedge due to its fixed supply, offers portfolio diversification beyond traditional assets, and provides high return potential with strong liquidity. Regulatory clarity and institutional adoption through Bitcoin ETFs have increased corporate acceptance.

Ethereum differs as companies need Ether for operational purposes. The world’s second-largest cryptocurrency powers blockchain applications while disrupting legacy financial products. While Bitcoin functions as “digital gold” for treasury reserves, Ethereum acts as “digital oil,” enabling participation in smart contracts and blockchain ecosystems. 

Both cryptocurrencies help companies signal innovation while potentially benefiting from the growing digital asset market. Valued at a market capitalization of just $19.4 million, SharpLink Gaming (SBET) stock has surged by a remarkable 2,739% in the last five trading sessions, primarily due to its newly announced Ethereum treasury strategy. Let’s see if you should own this micro-cap stock right now. 

What Does SharpLink Gaming Do?

SharpLink Gaming is an online performance marketing company specializing in fan activation solutions for sportsbook and casino partners. It operates through its global affiliate marketing network, PAS.net, which drives qualified traffic and player acquisitions to U.S.-regulated sportsbooks and international casino gaming partners. 

SharpLink also owns a performance marketing platform featuring U.S. state-specific web domains designed to attract local sports betting and casino traffic.

In January 2024, SharpLink underwent significant restructuring by selling its Sports Gaming Client Services and SportsHub Gaming Network business units to RSports Interactive for $22.5 million in cash. 

These divested operations included fantasy sports contests, league management services, and game development for major clients like Turner Sports, the NBA, the NFL, the PGA TOUR, and BetMGM. The transaction eliminated the majority of SharpLink’s assets, resulting in the classification of these operations as discontinued.

SharpLink completed a domestication merger in February 2024, converting from an Israeli corporation to a Delaware corporation while maintaining its Nasdaq Exchange listing under ticker SBET. It has also made strategic investments, including a $500,000 stake in U.K.-based CryptoCasino.com operator Armchair Enterprises.

Currently, SharpLink faces financial challenges with net losses from continuing operations and negative cash flow. The company has initiated a strategic alternatives review process and is exploring various funding options. Management has raised substantial doubt about the company’s ability to continue as a going concern without additional capital.

SharpLink Raises $425 Million to Buy Ethereum

Earlier this week, SharpLink Gaming announced a $425 million private investment in public equity (PIPE) offering. It sold approximately 69.1 million shares at $6.15 per share to strategic investors. 

Consensys Software led the investment round, with participation from major crypto venture capital firms, including ParaFi Capital, Electric Capital, Pantera Capital, Galaxy Digital, and others, as well as company management.

SharpLink plans to use the proceeds to acquire Ethereum as its primary treasury reserve asset. The private investment signals a notable shift beyond its core gaming business, as well as the growth of cryptocurrency treasury strategies.

It’s evident that SharpLink’s stock performance will be tied to Ethereum prices moving forward. This makes the micro-cap stock an ideal investment for those looking to gain potentially high-risk, high-reward exposure to the cryptocurrency market.