Sharplink Buys ETH Worth $30 Million from Ethereum Foundation – Crypto News – Crypto News
Connect with us
Sharplink Buys ETH Worth $30 Million from Ethereum Foundation Sharplink Buys ETH Worth $30 Million from Ethereum Foundation

De-fi

Sharplink Buys ETH Worth $30 Million from Ethereum Foundation – Crypto News

Published

12 months ago

on

The “Microstrategy of ETH” purchased 10,000 ETH from the Ethereum Foundation, with the proceeds being used by the EF to fund operations.

Sharplink, the gaming company led by Ethereum co-founder Joseph Lubin, revealed its latest ETH purchase for its Ethereum treasury on July 11 via an over-the-counter (OTC) transaction with the Ethereum Foundation (EF).

Sharplink paid $25.7 million for 10,000 ETH at an average price of $2,572, according to the company’s blog post. Now worth roughly $30 million, this acquisition pushes Sharplink’s treasury above the $500 million mark, after it reached $461million three weeks ago.

“This isn’t a trade – it is a commitment to our long-term vision. SharpLink is acquiring, staking and restaking ETH as responsible industry stewards, removing supply from circulation and reinforcing the health of the Ethereum ecosystem,” said Lubin.

Sharplink’s stock, SBET, has been rallying on the back of Ether’s strong performance, and is up 64% over the last week. ETH is up nearly 20% over the same period.

While it’s been a great week for SBET, the stock is still down 74% from its all-time high of $82, hit shortly after the company announced its ETH treasury plans. The stock took a brutal overnight hit on June 12 when the stock plummeted 76% on a false report that Consensys and Lubin were selling the stock. While this turned out not to be the case, SBET struggled to recover quickly.

SBET Chart – TradingView

While ETH holders celebrated the token’s strong price performance, some were quick to criticize the EF for selling more of its ETH, which was a common theme in 2024. To combat the perceived misalignment between the foundation and ETH investors, the EF released a new treasury policy in June centered around lowering annual spending, which is funded by selling ETH, from 15% of its ETH treasury to 5%.

The policy stated that future sales would be conducted mostly through fiat off-ramps or onchain swaps, one of the clear changes outlined in a bid to behave in a more “DeFiPunk” manner.

EF contributor Binji addressed some of the concerns on X, stating, “This went to a ETH holding company; the microstrategy of ETH: basically it went to the most diamond handed buyers possible. that’s quite literally their whole thing; you may as well consider this ETH as taken out of the supply/burned.”

“Other foundations in crypto are not this transparent and have been dumping 100x this amount all year,” he added.

Related Topics:
Continue Reading

Trending