Sharplink Gaming Stock Down 73% Overnight — Can a $1B ETH Move Save It?
Sharplink Gaming Stock – Sharplink Gaming (SBET) shares plummeted 73% in after-hours trading on Thursday, following the company’s Form S-3 filing with the U.S. Securities and Exchange Commission (SEC) to register 58.7 million common shares for potential resale. The move triggered panic among investors, who feared a massive insider sell-off. Shares had already closed the day down 12.25% at $32.53, before plunging below $8, according to Google Finance. At the time of writing, the stock has partially rebounded to $10.55, down 67.6% overall.
Joseph Lubin: “This is standard, not a sale”
Sharplink Gaming chairman Joseph Lubin, who is also the CEO of blockchain firm Consensys, quickly addressed the market reaction, stating the filing has been misinterpreted. In a post on Wednesday, Lubin emphasized that the filing is not evidence of any actual share sales, but a standard post-PIPE registration procedure in traditional finance.
Consensys general counsel Matt Corva supported the clarification, saying the document does not reflect actual sales, and that it had already been disclosed two weeks ago. “It’s just a basic, formal filing,” he said.
Ethereum treasury strategy triggers speculation
The filing comes amid Sharplink’s bold shift to an Ethereum-focused treasury strategy. On May 30, the firm announced plans to sell up to $1 billion in common stock to acquire ETH (Ethereum). This followed a $425 million funding round led by Consensys to back the initiative.
BTCS Inc. CEO Charles Allen described the situation as a “prisoner’s dilemma,” where shareholders panic-sell before others can. However, Allen hinted that a surprise PR move—announcing the $1 billion ETH purchase—could reverse the damage. “They may have played it brilliantly,” he said.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
