Sharplink Gaming Shares Plunge 73% Amid SEC Filing Confusion, Company Prepares for $1 Billion Ethereum Purchase

On Thursday, Sharplink Gaming's stock price changed a lot. It dropped 73% in after-hours trading but then rose again to close down 67.6% at

Written by: Arslan Butt • Friday, June 13, 2025 • 2 min read

• Last updated: Friday, June 13, 2025

Sharplink Gaming Shares Plunge 73% Amid SEC Filing Confusion, Company Prepares for $1 Billion Ethereum Purchase

Quick overview

Sharplink Gaming's stock plummeted 73% in after-hours trading following an SEC filing but closed down 67.6% at $10.55 per share.
The filing, which registered 58.7 million shares for potential resale, caused confusion among investors who mistakenly believed it indicated actual sales.
Chairman Joseph Lubin clarified that the filing was standard procedure and did not reflect any current share sales, aiming to alleviate investor concerns.
The company is pursuing a $1 billion Ethereum treasury strategy, which could potentially stabilize and boost its stock value in the future.

On Thursday, Sharplink Gaming’s stock price changed a lot. It dropped 73% in after-hours trading but then rose again to close down 67.6% at $10.55 per share. After submitting an S-3 shelf prospectus with the Securities and Exchange Commission, the shares of the Minneapolis-based online gambling company fell from $32.53 to just around $8.

The file, which registers about 58.7 million common shares for possible resale, caused a lot of alarm among investors who thought the paperwork meant that business executives were actually selling shares. But the bosses of the organization swiftly stepped in to clear things up.

Clarifying the Filing: Potential Resale, Not Actual Sales

Joseph Lubin, the chairman of Sharplink Gaming and the CEO of the blockchain software company Consensys, used social media to clear up the confusion. Lubin said that some people are misunderstanding the SEC filing and that the registration only covers “potential resale” of shares, not actual sales. “This is standard procedure after a PIPE in tradfi, not proof of actual sales,” he said, referring to the company’s recent private investment in public equity offering.

Matt Corva, the general counsel for Consensys, agreed with these thoughts and said that the filing was just normal paperwork that “doesn’t show anyone’s sales, which may or may not ever happen.” Corva said that the information had already been made public two weeks earlier. He called Thursday’s filing “the official statement saying yes, SBET sold those shares to investors, and they count.”

The Ethereum Treasury Strategy: A Game-Changer with Market Hiccups

The stock market is moving quickly because Sharplink Gaming is getting ready to put into action a bold Ethereum treasury strategy. On May 30, the business said it would sell up to $1 billion worth of common stock, with most of the money going toward buying Ether ETH/USD. After the business raised $425 million in PIPE fundraising, which was led by Consensys, Galaxy Digital, ParaFi Capital, Ondo, and Pantera Capital, this statement came.

Sharplink Gaming is one of an increasing number of publicly traded firms that are developing crypto-focused treasuries, following the model made famous by MicroStrategy with Bitcoin. The Ethereum-focused treasury approach has helped the company do this. But Sharplink is different from other corporate treasuries since it focuses on Ethereum instead of Bitcoin.

Charles Allen, the CEO of BTCS Inc., gave his thoughts on the situation, saying that the filing created “a prisoner’s dilemma” where stockholders rush to sell before others, starting “a classic race to the bottom.” But Allen said that the company might turn these losses around strategically. He said that revealing their planned $1 billion Ether purchase could “light the match to reignite the stock.”

The Road Ahead: Technical Outlook and Price Expectations

The stock’s recent ups and downs are a big change from how it did in May, when it shot up almost 400% to almost $80 after the first treasury strategy announcement. The company is betting on Ethereum, which is currently trading at about $2,640. Some analysts think it may go up to $4,000, which would be a 48% rise from where it is now.

Market watchers said that Wednesday was a good day for Sharplink Gaming, with shares jumping 9.09% to $37.07 as investors got ready for the price of Ethereum to go up. Peter Brandt, a futures trading expert, had said that Ethereum was “ready to fly,” which made him feel positive about the cryptocurrency. The chairman’s clarification said that neither Lubin nor Consensys had sold any shares, which calmed fears about insider selling that had caused the stock to drop sharply. The business is still committed to becoming what it calls the largest Ethereum treasury holding among publicly traded firms.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.