Shares in Sharplink Gaming, a sports betting platform, dropped 73% in after-hours trading after the company filed to register a large volume of shares for potential resale. The filing relates to nearly 58.7 million common shares, intended to raise funds for a significant purchase of Ethereum as part of their new treasury strategy. Chairman Joseph Lubin, also CEO of blockchain software firm ConsenSys, clarified that the filing was misinterpreted and does not indicate an actual sale of shares. He emphasized that this is a standard post-PIPE procedure and not an indication of share liquidation.
Despite closing the trading day down 12.25% at $32.53, the shares plummeted further to under $8 after hours, recovering slightly to $10.55 as of the time of publication. ConsenSys' general counsel Matt Corva remarked that the filing does not reflect sales currently taking place. He added that the news had already been communicated two weeks prior, tying it back to Sharplink's earlier announcement regarding the $1 billion share sale aimed at acquiring Ethereum.
Industry experts, like BTCS Inc. CEO Charles Allen, expressed sympathy towards current shareholders, describing the situation as a 'prisoner's dilemma' that spurs panic selling. However, Allen remained optimistic, suggesting that a proactive announcement regarding the $1 billion Ethereum purchase could help stabilize the stock price. 'If they play their cards right,' he said, 'we might see a surprise announcement that could reignite interest in the stock.'
Despite closing the trading day down 12.25% at $32.53, the shares plummeted further to under $8 after hours, recovering slightly to $10.55 as of the time of publication. ConsenSys' general counsel Matt Corva remarked that the filing does not reflect sales currently taking place. He added that the news had already been communicated two weeks prior, tying it back to Sharplink's earlier announcement regarding the $1 billion share sale aimed at acquiring Ethereum.
Industry experts, like BTCS Inc. CEO Charles Allen, expressed sympathy towards current shareholders, describing the situation as a 'prisoner's dilemma' that spurs panic selling. However, Allen remained optimistic, suggesting that a proactive announcement regarding the $1 billion Ethereum purchase could help stabilize the stock price. 'If they play their cards right,' he said, 'we might see a surprise announcement that could reignite interest in the stock.'
