SharpLink Gaming Soars 400% After $425 Million Raise Led by Joseph Lubin’s Consensys for Ethereum Treasury Strategy

SharpLink Gaming (SBET), the Minneapolis-based sports marketing company, saw its shares surge 412% on Tuesday following a major announcement to establish an Ethereum treasury reserve strategy. The move is being led by Ethereum co-founder Joseph Lubin, who will also join the company’s board as chairman.

SharpLink’s shares jumped from $7 last Friday to $34.45, boosting its market cap to $23 million. The company is raising approximately $425 million through a private investment in public equity (PIPE) offering, with funds designated for purchasing ether (ETH) to serve as the primary treasury reserve.

Consensys, the Ethereum software powerhouse co-founded by Lubin, is the lead investor in the funding round. Other notable backers include Pantera Capital, Galaxy Digital, and Ondo Capital.

The PIPE offering is expected to close on May 29. Upon closing, Lubin will assume the role of chairman, marking a strategic pivot for SharpLink into the rapidly growing crypto treasury arena.

SharpLink joins a wave of microcap firms following the successful example of MicroStrategy (MSTR), which saw its stock soar more than 3,000% over five years by adopting a bitcoin treasury strategy.

In related news, Trump Media & Technology Group (DJT) announced a $2.5 billion capital raise to initiate its own bitcoin treasury strategy.