In a First for the Industry, SharpLink Buys Almost 75,000 Ethereum. Here’s Why Investors Should Take Note.

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Ethereum (ETH), currently experiencing a significant surge, has seen an impressive 110% increase in value over the past three months. This upward trend is largely attributed to optimism surrounding the Genius Act, a new piece of legislation that outlines guidelines for stablecoins and marks the first crypto-related law passed in the U.S. Given that many stablecoins operate on Ethereum’s blockchain, any growth within this industry could lead to increased activity on its network.

A beneficial factor that’s gaining momentum is the trend of businesses incorporating Ethereum into their financial reserves. SharpLink Gaming (SBET) is spearheading this movement, having acquired 74,656 Ethereum coins from July 7 to July 13, bringing their total holdings to 280,706. At the time of writing (July 21), these coins are valued at over $1 billion. Currently, SharpLink Gaming holds more Ethereum than any other organization globally, even surpassing the Ethereum Foundation’s holdings.

Why investors should take note

Over the past few years, an increasing number of companies have been incorporating Bitcoin into their financial reserves. New accounting guidelines now allow firms to list the market value of their cryptocurrency holdings on their financial statements. Earlier, these digital assets were categorized as intangible assets and valued at the lowest price point during the ownership period. Interestingly, businesses have shown a greater preference for Bitcoin over Ethereum up until recently.

SharpLink, an online gaming and sports betting firm, is undergoing significant transformation. In May, they unveiled their plans to establish an Ethereum treasury and named Joseph Lubin, one of the co-founders of Ethereum, as their chairman. The company emphasizes that this Ethereum investment signifies a dedication to their long-term aspirations, not just a business transaction.

From my perspective, I’ve noticed that I recently contributed funds for buying Ethereum by offering equity shares. This was accomplished through a private investment in public equity (PIPE) funding round, which brought in around $425 million, and an additional $64 million from at-the-market (ATM) sales. Now, the strategy is to reallocate these earnings by reinvesting them. The process of staking not only yields returns but also plays a crucial role in maintaining the wellbeing of the Ethereum ecosystem.

Here are two reasons the move could be noteworthy for crypto investors:

1. Other companies may follow suit

As reported by BitcoinTreasuries.net, over 150 public corporations currently own Bitcoin. Among these companies, MicroStrategy (formerly known as Strategy) stands out with over 600,000 Bitcoins in its assets. This amassing of Bitcoin is just one factor contributing to the rise in Bitcoin’s price this year, although its long-term consequences are yet to unfold.

A few businesses such as Bit Digital (BTBT), BitMine (BMNR), and GameSquare (GAME) are now among those purchasing Ethereum via SharpLink. In May, the Securities and Exchange Commission (SEC) stated that staking cryptocurrencies do not inherently qualify as securities. This, coupled with the possibility of clearer regulations from Washington, has created a path for companies to buy Ethereum. This action could potentially boost prices.

2. It adds stability to the Ethereum network

A notable distinction between Bitcoin and Ethereum in a corporate setting lies in the ability of companies to “stake” Ethereum, which isn’t possible with Bitcoin. This feature benefits corporations as it allows them to earn returns not solely reliant on price appreciation, but also through the process of staking.

One issue with Bitcoin holding corporations is the possibility they may stretch themselves too thin and be compelled to sell at a loss if the price plummets significantly. However, as stated by Galaxy Digital (GLXY), companies that have acquired Ethereum have done so through equity issuance, similar to SharpLink. This way, there’s less risk of a downward spiral where declining prices lead to forced corporate sales, causing the prices to fall even more.

Furthermore, by securing their Ethereum tokens, these corporate holders contribute significantly to the security of the network. This process, known as crypto staking, involves keeping tokens in reserve to validate transactions on the blockchain, thereby verifying new blocks added to the chain. The greater amount of Ethereum that is staked, the stronger the network becomes against potential cyber threats. Currently, it is estimated that around 30% of all Ethereum is being used for staking through Coinbase (COIN).

Could Ethereum hit a new all-time high?

Since the election, Bitcoin has consistently reached new record highs, whereas Ethereum has faced difficulties in breaking the $4,000 mark, let alone surpassing its 2021 peak of nearly $4,900. However, it seems that this trend might be shifting now, as a mix of increased corporate and institutional ownership, evolving regulations, and enhanced optimism are fueling an Ethereum price surge.

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SharpLink’s approach of acquiring and staking in businesses has caught the attention of several companies so far, and analysts believe it’s just the start, especially with lawmakers easing compliance restrictions. It seems SharpLink could have paved a path for other companies to replicate.

In this unpredictable investment sector, there’s no assurance of consistent success. Some investors are worried about the centralization issue since one dominant force holds significant power. However, it appears that Ethereum’s current surge in popularity may still have room for growth in the near future.

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2025-07-24 12:02