Consensys Leads $425M Ethereum Treasury Deal for SharpLink in Major Crypto Market Shift
In a landmark move underscoring the growing intersection of traditional finance and blockchain, Consensys, the company behind MetaMask and a key player in Ethereum’s infrastructure, has led a $425 million private placement for SharpLink Gaming. The Minnesota-based affiliate marketing firm is now positioning itself to build what it claims could become the largest Ethereum (ETH) treasury among publicly traded companies.
The financing marks a bold strategic pivot for SharpLink, which currently holds a market cap of $34.8 million. The company plans to use the proceeds to acquire Ethereum as its primary reserve asset, embracing staking and other decentralized finance (DeFi) activities within the Ethereum ecosystem.
“We believe 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,” said Rob Phythian, SharpLink’s CEO.
The partnership brings another heavyweight to the table: Joseph Lubin, co-founder of Ethereum and CEO of Consensys, will step in as chairman of SharpLink’s board of directors. The move is expected to strengthen the firm's credibility and technical guidance as it integrates blockchain-based treasury management.
Alongside Consensys, a host of prominent crypto-focused investors also participated in the deal, including ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, and others. SharpLink has also secured asset management agreements with ParaFi and Galaxy Asset Management to support its ETH holdings and strategic participation in DeFi.
This strategy places SharpLink among a small but growing group of public companies embracing crypto as a core financial asset, a trend gaining momentum under a more crypto-friendly regulatory landscape. DeFi Development Corp. and Upexi have adopted similar strategies, albeit with Solana rather than Ethereum, exploring on-chain opportunities such as staking and protocol engagement.
As of this writing, Ethereum is trading at $2,505 with a 24-hour trading volume of $12.7 billion. It remains the second-largest cryptocurrency by market capitalization, trailing only Bitcoin.
Despite the high-profile investment news, SharpLink’s stock (SBET) fell over 34% to $50.13, reflecting either investor skepticism or broader market volatility.