• SharpLink stock plummeted nearly 66% after a misinterpreted SEC filing sparked investor panic.
• Company’s $425M Ethereum treasury move signals shift toward altcoin adoption in public markets.

SharpLink Gaming saw its stock nosedive to nearly 66% in after-hours trading on the 13th of June, following the company’s filing of a Form S-3 shelf prospectus with the SEC.

As expected, the move sparked confusion among investors and led to a steep drop in the stock’s value, from a closing price of $32.53, according to Yahoo Finance.

SharpLink Gaming’s filing with the SEC

The filing came shortly after the Minneapolis-based online gambling firm announced plans to establish an Ethereum-based treasury.

SharpLink Chairman Joseph Lubin, also the CEO of Consensys, clarified that investors had misread the purpose behind the filing.

Lubin said, 

“It registers shares for potential resale by prior investors. The ‘Shares Owned After the Offering’ column is hypothetical, assuming full sale of registered shares. This is standard post-PIPE procedure in tradfi, not an indication of actual sales. To clarify, neither Consensys nor I have sold any shares.”

This filing wasn’t a fire alarm

Moreover, Consensys General Counsel Matt Corva dismissed the sharp sell-off as unfounded panic, calling it “a bunch of FUD” driven by misinformation and misunderstanding of the standard S-3 filing process.

Corva said, 

“It would be the same as just recognizing that tokens have been minted as part of a smart contract, but it’s TradFi tech. The filing doesn’t reflect anyone’s sales, which may or may not ever happen, I have no idea. But it’s a basic filing. Like saying the sky is blue, but now it’s officially blue.”

SharpLink’s bold decision to establish an Ethereum treasury through a $425 million PIPE deal marked a significant shift in its corporate strategy, propelling its stock price nearly 400% in just two days.

Is Ethereum becoming institutions’ favorite?

While this approach echoes Strategy’s Bitcoin [BTC]-centric treasury model, SharpLink and peers like Upexi have taken a different path by issuing new shares instead of debt instruments like convertible notes.

This signals a broader trend of public companies diversifying into altcoin treasuries, particularly Ethereum [ETH], Solana [SOL], and Ripple [XRP], reflecting evolving investor appetites.

Backed by major crypto players including Consensys, Galaxy Digital, and Pantera Capital, SharpLink’s move may not just be about treasury diversification but also about aligning with a growing ecosystem of Ethereum-native finance.

read more