SharpLink Gaming, the Company That Previously Implemented an ETH Reserve Strategy, Sees Its Stock Price Drop by Over 70%

According to ChainCatcher, citing a report from Coindesk, SharpLink Gaming plunged by about 70% in after-hours trading on Thursday after submitting new documents to the US SEC.

It is reported that the company filed an S-3ASR registration statement, which allows for the resale of up to 58,699,760 shares by more than 100 shareholders related to its private investment in public equity (PIPE) financing. The market initially interpreted this filing as PIPE investors having already sold their holdings. However, Board Chairman Joseph Lubin stated on the X platform that the market had "misread" the S-3 document, clarifying that the filing was merely a pre-registration of shares for potential resale. This is a standard procedure following PIPE transactions in traditional finance and does not indicate actual sales.

Earlier this month, the company raised $450 million through PIPE financing, with investors including numerous institutions such as ConsenSys, Galaxy, and Pantera Capital. The funds will be used to acquire ETH as its reserve asset. Ethereum co-founder and ConsenSys CEO Joseph Lubin has also joined the company as Chairman of the Board.