SharpLink Gaming has significantly increased its share offering from $1 billion to $6 billion, with $5 billion of that raised specifically to buy more Ethereum, highlighting its aggressive push into crypto assets.

The company's stock has skyrocketed by 600%, largely driven by its substantial Ethereum holdings, which has sparked concerns about its inflated valuation and questionable business practices.

Investors are being cautioned to consider the risks of investing in a company valued mainly for its cryptocurrency assets rather than its actual business fundamentals.

Market analysts note that SharpLink's shares are trading well above their net asset value, indicating that the market is valuing the company based on its Ethereum holdings rather than its core operations.

The entry of competitors like Bitmine, backed by Peter Thiel and now the largest ETH holder, has intensified the hype around Ethereum investments, pressuring SharpLink to justify its lofty valuation.

There are concerns that SharpLink Gaming might be seen as merely an overpriced Ethereum wrapper, leading analysts to recommend selling its stock due to unsustainable valuation levels.

Analysts compare SharpLink's strategy to that of Bit Digital, which recently acquired nearly 20,000 Ethereum from a $67.3 million offering and now holds over 120,000 ETH, reflecting Ethereum's increasing adoption and staking potential.