SharpLink Gaming (SBET), a Nasdaq-listed entity focused on an Ethereum reserve strategy, experienced a significant stock decline of nearly 70% in after-hours trading on June 13. This drop followed the submission of an S-3ASR registration statement to the U.S. SEC, which permits the resale of up to 58.7 million shares related to its recent PIPE financing round.
The market initially reacted to the filing as if PIPE investors had liquidated their positions. However, Joseph Lubin, Chairman of the Board and Ethereum co-founder, clarified via the X platform that the document merely pre-registers shares for potential resale and does not indicate actual sales. This filing is a routine regulatory step post-PIPE transactions, consistent with standard practices in traditional finance.
Earlier in June, SharpLink successfully raised $450 million from prominent institutional investors including ConsenSys, Galaxy, and Pantera Capital. These funds are earmarked for acquiring Ethereum as a reserve asset, reinforcing the company’s strategic focus. At the time of writing, SBET’s after-hours price is $10.46, reflecting a 67.85% decrease from its previous close of $32.53.