SharpLink Gaming’s shares have gone full Wile E. Coyote—off a cliff and midair, wildly realizing the ground is gone—plunging 70% thanks to a $425 million Ethereum treasury announcement that had less to do with numbers and more to do with mass confusion. Evidently, the only thing dropping faster than their shares was investor confidence and, probably, a few smartphones hurled in disbelief. 📉
If you’re wondering who brought the fire extinguisher to this financial dumpster fire, it’s chairman Joseph Lubin, possibly sweating through his shirt, suddenly playing spokesperson and kindergarten teacher to the market.
How to Misread a Filing (and Lose Millions)
If you thought accountants were boring, watch out: SharpLink’s face-plant was triggered not by some wild crypto scheme, but by an S-3ASR filing so misunderstood, even Sherlock Holmes would give up. The company told everyone, “We’re going crypto! Ethereum for us, thanks.” But apparently, the real drama started when investors saw “S-3” and assumed it meant “sell everything and run.”
“The first Ethereum ‘Treasury company’ $SBET falls -75% after hours,” posted FinanceLancelot, whose Twitter must be a real beacon of hope and joy.
In reality, the SEC S-3 is just a way of saying, “Maybe, someday, someone will sell some shares, but not right now.” This minor detail was lost in translation, causing grown adults to do what they do best on Wall Street—panic and hit ‘sell’ faster than you can say “due diligence.”
SharpLink, eager for their own spot in the Crypto Hall of Fame, had previously flexed with their $425 million Ethereum stash, bravely veering onto the Ethereum highway while everyone else was still stubbornly clutching their Bitcoins like old family recipes. But the crowd, ever eager for a stampede, decided the real headline was: “You can’t trust paperwork.”
At this point, the market’s understanding was so upside down, it might as well have been a DeFi protocol. Crypto drama? Sure. But in this episode, the real villain was literacy. 📚
Joseph Lubin and the Art of Explaining the Obvious
Enter Joseph Lubin, who probably woke up thinking it was a regular day, and instead found himself myth-busting on Twitter. “We didn’t sell,” he declared, possibly for the fiftieth time that hour. He explained—slowly and with small words—that the S-3 filing is just S.O.P. for a private placement, and no, Consensys wasn’t having a fire sale in the alley behind the NASDAQ.
“Some are misinterpreting SBET’s S-3 filing: It registers shares for potential resale by prior investors. The ‘Shares Owned After the Offering’ column is hypothetical, assuming full sale of registered shares. This is standard post-PIPE procedure in tradfi, not an indication of actual sales. To clarify, neither Consensys nor I have sold any shares,” said Lubin, heroically resisting the urge to face-palm.
If Lubin hoped to restore calm, the stock price hasn’t yet received his memo. But on the plus side, he’s educated a few thousand slightly embarrassed investors—and maybe taught us all to read a footnote or two before pressing the panic button. 😅
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2025-06-13 08:31