Oh, look at this! The shares of SharpLink Gaming (SBET), the self-proclaimed “Ethereum treasury company,” just took a nosedive—down 70% in a single night. And what’s the reason for this catastrophe? Well, apparently the company had the audacity to file an S-3 registration statement with the SEC. You know, just a casual move to let it sell securities sometime in the future. No big deal, right? 😒
Now, brace yourselves, because this S-3 statement is covering a whopping 59 million shares. But before you panic, these shares are not all being sold at once. Oh no, these shares come from pre-funded warrants, strategic advisor warrants, placement agent warrants, and some other fancy private placement shares that were just hanging out, doing nothing. 😏
But hold on! The CEO of Consensys, Joseph Lubin, took to social media to clear up the confusion. Apparently, this “sale” of shares isn’t really a sale. According to Lubin, it’s just a filing, like some bureaucratic paperwork. It’s not about diluting the shares right now. No, no. It’s just a little thing that lets existing investors resell their shares *if* they want to. Big difference, right? 🙄
And just to make things extra clear, Lubin insists that this isn’t some sudden move to flood the market with shares. It’s just a formality after the company’s PIPE (Private Investment in Public Equity) funding. Nothing to see here, folks. Move along. 😤
Still, despite Lubin’s best attempts to soothe everyone’s nerves, the market isn’t buying it. SBET shares are still down by a staggering 70%. 😬
Why, you ask? Maybe because the idea of issuing 58.7 million shares (if all those fancy warrants get exercised) doesn’t exactly scream “good investment opportunity.” But hey, what do I know? Maybe the market just doesn’t get it. 🤷♂️
Oh, and did I mention SharpLink raised $425 million through PIPE to make Ether the *official* treasury asset? Yep, Lubin even joined as chairman, because clearly that’s the thing to do after a 70% drop in value. 🙄
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2025-06-13 10:44