SharpLink Gaming has entered into securities purchase agreements for a private investment in public equity (PIPE) worth around $425m (£314.9m) as part of its significant transition to an ethereum treasury strategy.
The deal includes the purchase and sale of 69.1 million shares of common stock priced at between $6.15 and $6.72 per share, with closing expected on or about 29 May.
The announcement sent SharpLink’s share soaring more than 400% to over $35 per share, giving the affiliate a market cap of around $25m.
Blockchain technology firm Consensys Software acted as the lead investor for the deal, flanked by crypto venture capital firms including ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital and Galaxy Digital.
Other firms such as Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures and Republic Digital contributed, as did SharpLink CEO Rob Pythian and CFO Robert DeLucia.
Investment banking firm Alliance Global Partners acted as the placement agent for the offering, with law firm Sullivan & Worcester acting as legal adviser.
Thompson Hine served as SharpLink’s legal adviser, while Baker Botts represented Consensys Software.
The affiliate has said it intends to use the funds generated to acquire the cryptocurrency ethereum, which will serve as the company’s primary asset going forward.
Part of the deal will see Consensys Software CEO and ethereum co-founder Joseph Lubin join SharpLink as chair upon the deal’s closing.
Lubin said: “On close, Consensys looks forward to partnering with SharpLink to explore and develop an ethereum treasury strategy and to work with them in their core business as a strategic adviser.
“This is an exciting time for the ethereum community, and I am delighted to work with Rob and the team to bring the ethereum opportunity to public markets.”
Phythian added: “This is a significant milestone in SharpLink’s journey and marks an expansion beyond our core business. On closing, we look forward to working with Consensys and welcoming Joseph to the board.”
Back in February, SharpLink acquired 10% of CryptoCasino.com in a $500,000 deal, marking its initial steps into the world of crypto.
The agreement also gave SharpLink first refusal to buy the controlling interest from parent company Armchair Enterprises.
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Funds raised from the sale will used to buy ethereum’s ether, with cryptocurrency’s co-founder Joseph Lubin joining the company as chair
The post SharpLink Gaming enters $425m private equity agreement to fund crypto purchase first appeared on EGR Intel.