Shares of sports marketing company SharpLink (SBET) rose 412% on Tuesday after it announced plans to create an Ethereum ETH treasury reserve strategy with involvement from the blockchain’s own co-founder, Joseph Lubin.
The Minneapolis-based firm, founded in 1995, is currently trading at $34.45, up from $7 Friday, with a market cap now of $23 million.
The company is raising roughly $425 million though a private investment in public equity (PIPE) offering. The proceeds will be used to buy ether, which will then serve as the primary treasury reserve asset.
Ethereum software developer Consensys, which was also co-founded by Lubin, was the lead investor with further participation by Pantera Capital, Galaxy Digital, and Ondo, among smaller names.
The offering is expected to close on May 29th, according to the release. Lubin will become chairman of the board of directors upon the closing.
SharpLink joins an increasing number of microcap companies trying to mimic the success of Strategy (MSTR), the first company to adopt a bitcoin BTC treasury strategy, resulting in an over 3,000% increase of its share price over the past five years.
Along those lines, Trump Media & Technology Group (DJT) Tuesday morning announced a $2.5 billion capital raise to begin a bitcoin treasury strategy.
