SharpLink Gaming (SBET) Closes $425M Private Placement

SharpLink Gaming, Inc. (Nasdaq: SBET) (“SharpLink” or the “Company”) today announced the closing of a $425,000,000 private placement (funded in a combination of fiat and ETH) led by Consensys Software Inc. and other investors to help SharpLink implement the largest Ethereum treasury strategy in the public markets. Joseph Lubin, Founder and CEO of Consensys and Co-Founder of Ethereum, became Chairman of the board of directors of the Company upon the closing of the transaction.

The offering included participation by prominent crypto venture capital firms and infrastructure providers such as ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures, and Republic Digital among others, including Rob Phythian, SharpLink’s CEO, and Robert DeLucia, SharpLink’s CFO.

This announcement marks a key milestone in SharpLink’s growth strategy. The transaction enables the Company to adopt ETH, the native asset of the Ethereum blockchain, as its primary treasury reserve asset, while also continuing to focus on its core business operations. Ethereum powers the majority of stablecoin payments, tokenized assets, and decentralized financial applications. SharpLink’s direct ETH treasury position will allow for access to protocol-level activities, such as staking and decentralized finance mechanisms, which are native to the Ethereum network. SharpLink has entered into Asset Management Agreements (AMAs) with ParaFi and Galaxy Asset Management to support the oversight of its Ethereum Treasury strategy alongside the Company’s management team.

Rob Phythian, CEO of SharpLink stated, “We believe that this is a powerful partnership combining SharpLink’s deep capital markets experience with Consensys’ leadership in both technological innovation and its role in building the Ethereum ecosystem. This marks a pivotal moment for SharpLink – one that underscores our commitment to innovation and long-term growth. With this investment, we’re not only strengthening our affiliate marketing business, but also pioneering an Ethereum-based treasury strategy by a Nasdaq-listed company.”

Joseph Lubin, Founder and CEO of Consensys, Co-Founder of Ethereum and Chairman of SharpLink’s board of directors stated, “At Consensys, we believe Ethereum has proven itself over the past decade as a resilient, programmable decentralized trust foundation, supporting both institutional and public applications. This partnership with SharpLink represents more than just a financial milestone: it reflects the growing recognition across capital markets that programmable assets like ETH play an important role today in how value, trust, and financial systems are structured globally. I am pleased to join as Sharplink’s Chairman of the Board of Directors in adopting Ethereum’s open, secure, and scalable infrastructure, which is already being used across institutional and decentralized applications.”

A.G.P./Alliance Global Partners acted as the sole placement agent in connection with the offering.

The offer and sale of the foregoing securities was made in a private placement in reliance on an exemption from the registration requirement of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder, and applicable state securities laws. Accordingly, the securities offered in the private placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirement of the Securities Act and such applicable state securities laws. Concurrently with the execution of the securities purchase agreements, the Company and the investors entered into a registration rights agreement pursuant to which the Company has agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) registering the resale of the shares of common stock.

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