Stock to Watch: $SBET
On May 27, Sharplink Gaming Inc. announced its ETH treasury strategy, becoming the public company with the largest ETH treasury—following the trend of crypto treasury plays. The company raised $425 million through a private placement led by ConsenSys Software Inc., with participation from top-tier crypto venture firms and infrastructure providers, including ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures, Republic Digital, as well as SharpLink CEO Rob Phythian and CFO Robert DeLucia.
Ethereum co-founder and ConsenSys CEO Joseph Lubin joined SharpLink’s board as Chairman—bringing one of the most respected figures in the crypto industry to the helm and underscoring that this is a serious team with deep roots in the Ethereum ecosystem. ConsenSys is a leading Ethereum software company founded in 2014 by Joseph Lubin. The firm played a central role in building and scaling the Ethereum ecosystem, developing key infrastructure like MetaMask, the most widely used Ethereum wallet and browser extension, and Infura, a backend node infrastructure provider that powers much of Web3.
SBET stock has been extremely volatile—rallying over 4,000% from pre-announcement levels to a peak of $124, before falling back to $10.28.
Timeline of Key Events
May 20: Raised $4.5M at $2.94/share for general corporate use
May 27: Announced $425M PIPE at $6.15/share
May 30: Share price peaked at $124.12 intraday, closed at $76.70
June 2: First major correction
June 5: Second major drawdown
June 13: Announced $463M purchase of 176,271 ETH at $2,626, plus $79M ATM at $49/share; triggered sharp drop after S-3 filing
June 18: Options trading on Nasdaq commenced
June 24: Announced $30.7M purchase of 12,207 ETH at $2,513, and $27.7M ATM at $10.90/share
The decline from $124 to $43 appears to be a natural correction, compounded by a pullback in ETH price. Notably, when ETH fell 7.32% from $2,607 to $2,416, SBET dropped 23.21%—a move consistent with the higher volatility typically seen in crypto treasury equities, especially during post-announcement re-pricing.
The largest drop occurred on June 13, when the stock fell 78.34% from $42.52 to $9.21, despite a sharp rise in ETH price following the filing of its Form S-3ASR (automatic shelf registration statement). A Form S-3ASR is effective immediately upon filing for well-known seasoned issuers (WKSIs), making the registered shares eligible for resale right away. With the stock closing at $32.53 the day prior, PIPE investors were up 429% on paper. The steep drop likely reflects investors rushing to exit and lock in profits ahead of others.
As the dust settles, SBET’s market NAV (mNAV) stands at 1.37x—below Strategy’s (MSTR) 1.88x, despite SBET having significantly more room to grow. For comparison, Metaplanet trades at 5.16x mNAV. ETH currently represents 14% of Bitcoin’s market cap, and with Strategy valued at $109 billion, a proportional ETH treasury vehicle could justify a valuation of up to $15 billion—compared to SBET’s current market cap of just $627 million.
Every capital raise above mNAV is accretive to shareholders. Since its initial $425 million raise just a month ago, SBET has completed additional raises of $79 million at $49/share and $27.7 million at $10.90/share. If market conditions remain favorable, there’s clear potential for even larger, value-accretive raises.
Current price may represent a temporary dislocation. If mNAV expands and value-accretive raises continue, SBET could outperform ETH.
About BlockSpaceForce
BlockSpaceForce is a Bitcoin Operating Capital. We fund, advise, and operationally support the ecosystem's top builders. We scale Bitcoin's utility through infrastructure, yield strategies, and treasury innovation — partnering deeply with category-defining teams to accelerate Bitcoin’s transformation into the world’s premier economic engine.
Disclaimer
This analysis was authored by Charles Chong, VP of Strategy at BlockSpaceForce. The views expressed are his own and are provided for informational purposes only. This content does not constitute investment advice or a recommendation to buy or sell any asset. While reasonable efforts have been made to ensure the accuracy of the information presented, readers are encouraged to conduct their own research and due diligence before making any financial decisions.
