13.06.2025 11:05

Sharplink Gaming, a major ether (ETH) treasury company, experienced a dramatic collapse in its share price during yesterday's after-hours trading on the NASDAQ. Shares plummeted from $33 at the closing bell to below $11 by 8 PM, representing a staggering 91% drop from their all-time high of $124 just two weeks prior. This unprecedented decline was fueled by widespread panic triggered by a shareholder dilution announcement.


A viral tweet from Steven Zheng of The Block highlighted the situation, alleging that nearly all participants in Sharplink's recent private placement sought to offload their shares shortly after the company unveiled its ETH treasury strategy. Trading volume surged more than tenfold above its average, underscoring the intensity of the selloff, and the single-day percentage loss eclipsed any previous trading day in the company's history. This dramatic market reaction sharply contradicted a statement from a ConsenSys lawyer attempting to downplay the situation.


A lawyer employed by ConsenSys, the pro-Ethereum enterprise headed by Joe Lubin (who also serves as Sharplink's chairman), attempted to quell the market's concerns. He characterized the SEC Form S-3ASR filing, which triggered the sell-off, as a routine resale registration, insisting it did not signify actual share sales. Dismissing the widespread panic as "fear, uncertainty, and doubt" (FUD) from uninformed investors, his reassurances failed to resonate with the market.


The shelf registration statement, a necessary step for the resale of over 58 million shares acquired during a capital raise to purchase ETH, proved insufficient to prevent the massive sell-off. Before its recent collapse, Sharplink, backed by $450 million in funding, aimed to be a leading example of a non-Bitcoin-focused crypto treasury company. However, the dramatic share price decline significantly undermines this ambition. The information regarding this incident was obtained from internet sources.