SharpLink Gaming’s Ethereum Play: What Is Happening At SBET?

SharpLink Gaming's stock (NASDAQ: SBET) is moving higher in the pre-market, up 3.29% at $23.21. However, this seemingly stable surface hides a whirlwind of activity beneath, driven by the company's aggressive strategy of accumulating Ethereum (ETH).

While the stock has seen positive momentum, especially following recent funding announcements, a growing chorus of traders are questioning whether SBET is truly capturing the full potential of its ETH holdings.

The past year has been a rollercoaster for SBET, with a 52-week high of $124.12 and a low of $2.26. This volatility reflects the inherent risks and rewards associated with a company so closely tied to the cryptocurrency market.

SharpLink's recent stock price movements are inextricably linked to its Ethereum strategy. On August 11, 2025, the company announced a $400 million registered direct offering with institutional investors, priced at $21.76 per share. The primary objective? To further expand its Ethereum treasury.

As of August 10, 2025, SharpLink held approximately 598,800 ETH, a figure slated to grow significantly with the injection of new capital. The company anticipates its ETH holdings will exceed $3 billion in value. This announcement triggered a 14% surge in SharpLink's stock price, coinciding with Ether reaching a session high of $4,349.

Just days earlier, on August 7, SharpLink had already secured a $200 million registered direct offering, priced at $19.50 per share, with the same goal in mind: amassing more Ethereum.

This isn't a new strategy. In mid-July, SharpLink expanded its stock sale program to a staggering $6 billion, earmarking the majority of the funds for Ethereum purchases. Prior to this, the company had already raised $720.8 million through earlier sales and held over 280,000 ETH, almost all of which was staked for rewards. These moves clearly signal SharpLink's conviction in Ethereum as a core asset.

Despite the positive stock movement following the latest funding announcement, a growing number of traders are questioning whether SBET's stock price accurately reflects the value of its Ethereum holdings. While the stock has benefited from the overall rise in ETH prices, many argue that it has underperformed compared to both the cryptocurrency itself and other ETH-linked stocks. This perceived underperformance has led to discussions about potential undervaluation and the factors that might be holding SBET back.

The SBET share price has fallen 5.9% over the past month of trading, whilst ETH has added 58.84%, perhaps causing some of the questions. Looking out over a longer timeframe however, and SBET has rallied 178% since the start of 2025, whilst Ethereum has seen gains of 40%.

Plenty of questions, and we expect to see more of SharpLink gaming if current trends hold out.