Ethereum treasury firm’s shares skyrocket 2,700% in four days

Ethereum’s first treasury company is paying dividends — big time.
Shares in SharpLink Gaming, an online casino company that raised a $435 million Ethereum treasury this week, have skyrocketed 2,700% this week. And its market capitalisation is up 11-fold.
Not bad for an outfit with five full-time employees.
The performance is sure to burnish Joe Lubin’s credentials as an Ethereum Treasury tactician. The CEO of Consensys led the fundraising deal that drove the treasury move, plus he just joined SharpLink as chairman.
The deal marks the first time an Ethereum stalwart has followed Michael Salor’s footsteps at MicroStrategy, now called Strategy.
Potential shift
For years, Ethereum has played second fiddle to Bitcoin when it came to narratives around institutional adoption.
But this deal — and its eye-opening market reaction — could signal a shift. One especially prescient as several new Bitcoin treasury companies that launched this week suffered a drop in their stock prices.
On May 27, Trump Media & Technology, or TMT, announced it was raising $2.5 billion to finance Bitcoin purchases. The firm’s stock dropped 11%.
One day later, video game retailer and beloved meme stock GameStop said it bought 4,710 Bitcoin. Shares dropped 9%.
Alternative treasuries
Both are part of an “alarming” trend of companies following Michael Saylor’s footsteps, according to macro analyst Noelle Acheson.
Risks abound for firms that decide to mimic Strategy.
Moreover, if new Bitcoin treasury companies don’t see the success of Strategy — its stock is up 10-fold since it began its Bitcoin buying spree in 2020 — they could potentially start looking at other cryptocurrencies to beef up their balance sheets.
For instance, Saudi-backed VivoPower made a $121 million XRP treasury bet this week. But its investors enjoyed a short-lived 28% gain in their holdings.
SharpLink is bucking the trend, so far.