SharpLink Purchases 10,000 ETH From Ethereum Foundation In OTC Deal
SharpLink Gaming has purchased 10,000 ETH from the Ethereum Foundation in a $25.7 million over-the-counter (OTC) deal. The purchase is the first direct acquisition of ETH by a publicly listed company from the Ethereum Foundation.
The company may be positioning ETH as its primary treasury reserve asset, and plans to stake and restake the acquired ETH, effectively removing it from circulation.
SharpLink Gaming Acquires 10,000 ETH
The Ethereum Foundation has sold 10,000 ETH to SharpLink Gaming in an OTC deal worth $25 million. The deal is the first time a publicly-listed company has directly acquired ETH from the foundation. SharpLink Gaming completed the purchase at an average price of $2,572 per token. The transaction was settled on-chain via the Ethereum Foundation’s multisig wallet on July 10. The Ethereum Foundation plans to use all proceeds from the sale to support its core activities.
SharpLink described the purchase as a commitment to Ethereum’s long-term mission. The firm plans to use ETH as its primary treasury reserve asset and plans to stake and restake the ETH, removing it from circulation. Joseph Lubin, Chairman of SharpLink and a co-founder of Ethereum, stated,
“This isn’t a trade — it’s a commitment. SharpLink is acquiring, staking, and restaking ETH as responsible industry stewards, removing supply from circulation and reinforcing the health of the Ethereum ecosystem.”
Lubin added that SharpLink views the acquisition as a model for how mission-driven organizations can work to advance shared goals.
“Moreover, we see this as the start of something bigger – a model for how mission-driven organizations can work to advance our ecosystem’s shared goals of decentralization, economic empowerment, and protocol-native finance. At a time when Ethereum is entering a new era of institutional relevance, we are proud to support the network’s long-term strength and decentralization mission.”
Ethereum Foundation Acknowledges Sale
The Ethereum Foundation, the entity in charge of funding the research and development associated with Ethereum, acknowledged the sale on X, stating,
“Earlier this week, the EF finalized the terms of a 10,000 ETH sale at an average price of $2,572.37 via OTC. For this sale, our OTC counterparty was @SharpLinkGaming.”
The foundation has come under scrutiny for its use of funds, with market participants complaining that the sale of ETH to fund initiatives impacts the asset’s price. However, because OTC sales are private, the ETH sold to SharpLink didn’t hit the secondary market. Market watchers called the sale a creative way to address the issue flagged by the Ethereum community. Alex Svanevik, co-founder and CEO of blockchain analytics company Nansen, stated,
“Guess that’s one way to fix [Ethereum Foundation] dumping.”
SharpLink Shares Jump
SharpLink shares rose following the acquisition, and have jumped over 50% in the past week. The stock was changing hands around $20 per share, a 71% increase. The stock’s exceptional performance coincides with ETH’s push above $3,000 earlier this week. SharpLink aims to maximize shareholder value by growing the number of digital assets (ETH) it owns per fully diluted share.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
