SharpLink Gaming has made headlines by acquiring over 176,000 Ethereum (ETH) for approximately $463 million, positioning itself as the largest publicly traded holder of ETH as of June 13, 2025.

Despite SharpLink's significant acquisition, the Ethereum Foundation remains the largest holder with 214,129 ETH valued at $594 million, while BlackRock's iShares Ethereum Trust ETF manages around 1.7 million ETH worth about $4.5 billion.

The acquisition, funded through a private placement and equity sales, raised $79 million since late May 2025, marking a strategic pivot for SharpLink towards a cryptocurrency treasury model.

This purchase, made at an average price of $2,626 per ETH, makes SharpLink the first Nasdaq-listed company to adopt an Ethereum-focused treasury strategy, aiming to provide shareholders with exposure to the cryptocurrency.

CEO Rob Phythian emphasized that this move signifies a pivotal moment for public companies embracing digital assets, with ETH designated as their primary treasury reserve asset.

SharpLink's ETH strategy has sparked controversy, initially causing its stock to soar over 4,300% in early May, but it has since experienced a dramatic decline, dropping nearly 67% following the acquisition announcement.

The stock's decline was exacerbated by a recent SEC filing regarding the potential resale of 68 million common shares, which led to fears of shareholder dilution and a subsequent 70% drop in stock price.

While SharpLink's investment in Ethereum may be seen as a gamble, its outcome will provide valuable insights for traders and industry observers regarding corporate cryptocurrency strategies.

SharpLink has staked over 95% of its Ethereum holdings, which not only contributes to Ethereum's network security but also allows the company to earn additional ETH as yield.

At the time of the acquisition announcement, SharpLink's market capitalization was reported at $34.8 million, reflecting the volatility and uncertainty surrounding its stock performance.

Joseph Lubin, co-founder of Ethereum and SharpLink's chairman, clarified that the SEC filing was routine and not indicative of insider selling, aiming to alleviate concerns among investors.

Despite institutional investments, Ethereum's performance has been impacted by leadership disputes and geopolitical issues, contributing to a 7% price drop just prior to the article's publication.