Consensys to help SharpLink build its ETH treasury by leading $425 million private placement

Consensys Software, a crypto infrastructure firm developing the popular digital wallet MetaMask, led a $425 million private placement for SharpLink Gaming, a Minnesota-based affiliate marketing firm for online casino gaming operators and sportsbooks.

SharpLink aims to build the largest Ethereum treasury in the public market with this financing, joining other publicly traded firms doubling down on a cryptocurrency treasury under a crypto-friendly presidential administration. The company has a market cap of $34.8 million.

The private placement lets SharpLink acquire ethereum as its primary reserve asset as well as to enter Ethereum protocol activities such as staking and decentralized finance, according to a company release . SharpLink penned asset management agreements with ParaFi, an alternative asset management firm, and Galaxy Asset Management to help oversee its Ethereum treasury strategy.

Following the transaction, Consensys CEO and co-founder Joseph Lubin joins SharpLink's board of directors as chairman. Lubin is also one of the co-founders of the Layer 1 blockchain Ethereum, which powers the cryptocurrency ETH.

"We believe that this is a powerful partnership combining SharpLink’s deep capital markets experience with Consensys’ leadership in both technological innovation and its role in building the Ethereum ecosystem," SharpLink CEO Rob Phythian said in a statement. "With this investment, we’re not only strengthening our affiliate marketing business, but also pioneering an Ethereum-based treasury strategy by a Nasdaq-listed company."

Other participants in SharpLink's $425 million private placement included ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures, and Republic Digital. Phythian. Sharplink CFO Robert DeLucia also contributed to the financing.

The Block reached out to SharpLink and Consensys for additional comment.

Other publicly traded companies doubling down on a cryptocurrency treasury, particularly solana, include DeFi Development Corp. , previously known as the real estate software firm Janover , as well as consumer products firm Upexi . Like SharpLink, DeFi Development Corp. also intends to access Solana network activity, such as staking and DeFi, with its SOL treasury.

Ether traded at $2,505 as of publication, and drew in $12.7 billion trading volume within the past 24 hours, according to The Block's ETH Price Page . Ethereum follows bitcoin as the second most valuable cryptocurrency, with a market capitalization of $302.4 billion.

SharpLink's stock (ticker SBET) traded down more than 34% to $50.13 at publication time.