Sharplink Gaming (SBET) saw its shares collapse by 73% in after-hours trading following a share registration filing with the SEC — but this plunge may be temporary as the firm eyes a massive $1 billion Ethereum investment.
The sudden drop alarmed investors, but Sharplink chairman Joseph Lubin, also the CEO of Consensys, says the market misread the filing.
📉 SEC Filing Sparks Panic — But No Shares Were Sold
On June 6, Sharplink filed Form S-3 with the U.S. SEC to register nearly 58.7 million shares for potential resale.
Lubin quickly addressed the confusion, explaining the filing was standard post-PIPE protocol — not an indication of a mass sell-off. He confirmed that neither he nor Consensys has sold any shares.
The filing triggered panic, pushing SBET from $32.53 to under $8, before slightly recovering to $10.55 — still down nearly 68%.
🔁 Ethereum Treasury Strategy: The Bullish Catalyst
This filing comes on the heels of Sharplink’s recent announcement: a bold move to transition into an Ethereum-based treasury, including a planned $1 billion Ether (ETH) purchase.
On May 30, the company revealed plans to raise up to $1 billion through stock sales, with most of the capital going toward acquiring ETH.
This is part of a broader Ethereum pivot backed by a $425 million funding round led by Consensys.
🗣️ Crypto Execs Say Market Overreacted
Sharplink’s general counsel Matt Corva called the panic “understandable” but clarified that no share sales had occurred — just the registration.
BTCS Inc. CEO Charles Allen described it as a classic “prisoner’s dilemma”, where shareholders panic-sell first to avoid being last.
However, Allen believes a surprise announcement confirming the $1B ETH purchase could reverse the damage quickly. “They may have played it brilliantly,” he added.
🧠 Investor Takeaway: Short-Term Fear, Long-Term Opportunity?
While fear swept the market, insiders insist this is a paperwork-driven panic, not a fundamental flaw.
Sharplink’s Ethereum pivot signals long-term confidence in crypto infrastructure, and if the $1B Ether buy materializes soon, it could rapidly reignite investor interest in SBET.
For more updates on Ethereum-based corporate strategies and crypto stock reactions, visit https://cryptodicenews.blog
