- SharpLink acquires 10,000 ETH to establish a long-term digital asset reserve strategy.
- Ethereum surges $3,000 post-acquisition, driven by investor confidence and volume.
- SharpLink stakes ETH to boost Ethereum network health, not for trading or speculation.
SharpLink Gaming Inc. has acquired 10,000 Ethereum (ETH) from the Ethereum Foundation for $25,723,680 on Friday, and the deal was finalized at a token price of $2,572.37, marking a strategic shift towards digital asset reserves.
This move demonstrates trust in the long-term utility and decentralization of Ethereum’s network. Further, the acquisition will enable SharpLink to leverage its financial structure and technological presence within the blockchain-based gaming sector.
Ethereum Foundation Finalizes Direct Sale of 10,000 ETH
The Ethereum Foundation directly sold 10,000 ETH to SharpLink in an on-chain deal, which is finalized on the Ethereum mainnet and is transparent and traceable. SharpLink will stake and restake the tokens to support Ethereum’s network health and decentralization goals, and also confirmed that the ETH will not be held for speculative trading.
According to the U.S. accounting laws, the ETH will be recorded at fair value, and any changes in ETH’s market value will affect net income in each reporting period, leading to significant income statement volatility in future quarters.
ETH Price Jumps After Strategic Acquisition
On teh market front, Ethereum has been showing a robust upward price movement. The altcoin traded above $3000 briefly just after the acquisition. At press time, ETH is trading at $2,962, an increase of 5.8%, and a 24-hour trading volume of $53.57 billion.
Source: Tradingview
The buying interest grew to a market capitalization of $360.49 billion. The total diluted valuation of Ethereum was also equal to the market cap and indicating a high demand and constant flow of supply. The price volatility was also low following the surge, indicating sustained confidence.
The current value of the RSI is over 70, which suggests that it has reached an overbought zone, and it will soon face a pullback. The MACD has a bullish cross with a rising divergence between the MACD and signal, indicating a strong upward trend.
SharpLink Reinvents iGaming Model with Web3 Integration
SharpLink is also applying Ethereum technology across its core business in online gaming and sports betting. The firm is integrating smart contracts and decentralized protocols into its iGaming platforms, allowing transparency, automation, and cost efficiency.
SharpLink intends to disrupt the conventional business models in the industry with scalable and secure betting and smart contract-based betting solutions. The company is also developing its infrastructure, integrating the traditional iGaming with modern blockchain developments. This model provides users with quicker transactions and more powerful protections.
The Minneapolis-based company is becoming a Web3-first provider of games with a very ambitious roadmap heavily focused on Ethereum. The management of SharpLink believes that blockchain can be important in transforming the online betting industry in the world, establishing a financial force through technological innovation by making ETH its reserve asset.
SharpLink Deepens Web3 Integration Through ETH
SharpLink is expanding its digital asset library to fuel the second-generation gaming platforms. The corporation specializes in Web3 infrastructure, smart contracts, and decentralized sports betting protocols, aiming to modernize the iGaming sector using transparent and effective blockchain solutions.
The purchase of ETH aligns with SharpLink’s overall decentralized finance stance. Management emphasized that the buyout represents a structural change and not a short-term investment, with the firm viewing ETH as a long-term financial resource.
