SharpLink Seeks $75 Million in Offering That Could Fund More Ether Purchases

SharpLink Gaming Inc. (SBET), an Ether treasury company, is seeking to raise about $75 million. The proceeds will be used for working capital and general corporate purposes, and may also be used for additional Ether purchases and share buybacks.

SharpLink said in a GlobeNewswire release on June 22 that it had entered into a securities purchase agreement with institutional investors to sell 10,013,351 shares of common stock and an equal number of warrants.

The combined purchase price for the shares and warrants was set at $7.49 each. That is about 41% above SharpLink's June 18 closing price of $5.29 on the Nasdaq Capital Market.

The warrants have an exercise price of $8.15 a share, are exercisable immediately upon issuance, and expire four years from the issue date.

The company said gross proceeds from the registered direct offering are expected to be about $75 million before placement agent fees and other offering expenses. The deal is expected to close on or about June 23, subject to customary closing conditions.

SharpLink plans to use the proceeds for working capital and general corporate purposes. Those uses may include additional Ether purchases and repurchases of common stock under its share repurchase program.

Chief Executive Officer Joseph Chalom described the financing as a strong endorsement of SharpLink's Ether treasury strategy. He said raising capital at a premium to both the market price and the value of its Ether holdings reflects investor confidence in the company's strategy.

SharpLink said it held 875,776 ETH as of June 16. The company is pursuing a strategy of giving public-market investors exposure to Ether through its Ether treasury platform.

The offering has not yet closed and remains subject to customary closing conditions.