SharpLink purchases tens of millions of dollars in ETH, aiming for the largest Ethereum institutional holdings throne.

Ethereum co-founder, Consensys CEO, and SharpLink Gaming board chairman Joe Lubin revealed on Tuesday that this publicly traded sports marketing company SharpLink Gaming is continuously purchasing Ether (ETH) at a scale of “tens of millions of dollars” daily.

Open positions are closing in on the Ethereum Foundation, institutional giants are rising

At the current purchasing rate, SharpLink will soon surpass the Ethereum Foundation to become the largest corporate holder of the blockchain-native cryptocurrency Ether. As of the report (Thursday), the Ethereum Foundation holds ETH worth $725 million, while SharpLink's holdings have reached $612 million. Lubin told CNBC: "We are continuously and steadily increasing our holdings - we are able to purchase tens of millions of dollars worth of Ether every day."

Imitating MicroStrategy, a New Strategy for Small Companies' Crypto Asset Allocation

This is a sudden and large-scale cryptocurrency bet, and it has become a popular strategy for small public companies. Sharp Link CEO Rob Phythian announced the company's "expansion beyond core business" plan back in May. The company sold approximately $425 million worth of stock to an investment group that includes Consensys, clearly stating that the raised funds would be used to purchase Ether, with ETH serving as the "company's primary reserve asset." This move directly follows the strategy of software company MicroStrategy to accumulate $67 billion worth of Bitcoin since 2020. Lubin revealed to DL News in June that it was the weak price performance of Ethereum relative to Bitcoin and Solana that prompted him to borrow from MicroStrategy's playbook.

Stock prices rollercoaster, ETH price rebounds

Four days after SharpLink announced its strategy, its stock price skyrocketed by 2700%, reaching a high of $124 on May 30. However, the stock price then fell back and plummeted by 75% after submitting an SEC filing that allowed insiders to sell shares. Rubin clarified in June on the X platform (formerly Twitter) that the filing is standard procedure and that neither he nor Consensys sold any shares. When asked by CNBC on Tuesday about the current state of Ethereum and its underperformance relative to Bitcoin, Rubin stated that he believes all activities on the internet will eventually migrate to the blockchain, and Ethereum is in the best position to benefit.

SharpLink's ETH Strategy: Financing Purchase + Staking Income

SharpLink raises funds by selling stock to purchase Ethereum. The company announced on Tuesday that it raised $64 million from June 28 to July 4, of which $37 million will be used to increase its ETH holdings. SharpLink also stated that all of its held Ethereum has been deployed into staking and restaking protocols to earn yield. Since June 2, the company has earned 322 ETH in yield through staking and restaking.

Whale Holding Tracking: SharpLink Ranks Second

The Strategic ETH Reserve website tracks all entities holding more than 100 ETH. As of Thursday, 46 entities hold over 1.3 million ETH, with a total value exceeding $3.6 billion. The top five institutional ETH holders ranked in descending order by holdings are: Ethereum Foundation, Sharp Link, PulseChain, a CEX, and Golem Foundation.

Market Update: Stock Prices Rise, ETH Reaches Several-Month High

After dropping below $10 on June 13, SharpLink's stock price has now risen to $18. Meanwhile, the price of Ethereum reached $2,967 on Thursday, marking the highest level since early February, demonstrating a strong Ethereum price rebound momentum.

Gate.io market shows that ETH is currently priced at $2,954.43, with a 24-hour increase of 6.41%.