SharpLink Gaming plans $75 million funding to buy more Ether and repurchase shares

SharpLink Gaming is looking to raise about $75 million in a registered direct offering that could give the Ether treasury company more room to buy ETH, repurchase stock and cover day-to-day corporate needs.

The company said on June 22 that it had signed a securities purchase agreement with institutional investors to sell 10,013,351 shares of common stock and an equal number of warrants. The combined price for each share and warrant package was set at $7.49, about 41% above SharpLink’s June 18 closing price of $5.29 on Nasdaq Capital Market.

The warrants carry an exercise price of $8.15 a share, can be exercised immediately, and expire four years after issuance. SharpLink expects gross proceeds of about $75 million before placement fees and other expenses. The deal is scheduled to close on or about June 23, subject to customary closing conditions.

SharpLink said the money will go toward working capital and general corporate purposes. That bucket also includes two items that matter to crypto traders: additional Ether purchases and repurchases of common stock under its buyback program. For a company built around holding ETH on its balance sheet, that leaves open the possibility of adding to its token stack if management decides the market is right.

Chief Executive Officer Joseph Chalom framed the financing as a vote of confidence in SharpLink’s Ether treasury model. He said the ability to raise capital at a premium to both the share price and the value of its Ether holdings reflects investor belief in the strategy. SharpLink said it held 875,776 ETH as of June 16.

The offer has not closed yet, and the size of any further Ether buying will depend on how much capital remains after fees, operating needs and any buybacks. Traders will be watching the June 23 closing, any follow-up disclosure on how the proceeds are allocated, and whether SharpLink uses the new cash to expand its ETH position further.