SharpLink Gaming (Nasdaq: $BET) announced that its paper gains have skyrocketed to over $900 million since it decided to manage its treasury resource with Ethereum starting early June. The company announced in a post on X on Monday when it reported to have doubled its ETH concentration in the last four months, thus creating a considerable amount of shareholder value.
SharpLink currently has around 839,000 ETH on its balance sheet. The company stated that its treasury was risk-free concerning debt, pointing out Ethereum’s role as a productive and yield-bearing asset. The move is consistent with the trend of increasing numbers of public companies that turn to digital asset treasuries (DATs) to achieve the diversification of their portfolios and get exposure to the cryptocurrency market for possible gains.
SharpLink additionally characterized its roadmap to digitize the company’s common-stock shares of SBET by way of the Ethereum blockchain, constituting a smorgasbord of equity representation based on the blockchain. This new modus operandi of the firm displays how conventional companies are integrating cryptoasset-related strategies with financial structures.
Moreover, SharpLink plans to deposit a portion of its ETH holdings on Linea, the Layer 2 scaling solution for Ethereum managed by ConsenSys. The partnership is anticipated to leverage yield possibilities alongside facilitating Ethereum’s network adoption by enterprises.
However, their offerings are more traditional in nature, which might suit enterprises looking for basic functionalities rather than innovative edge solutions. Still, they are a good option for foundational blockchain work.
Joseph Lubin, chairman of SharpLink and founder of Consensys, mentioned in an interview that the tie-up would probably be the next big thing for Linea, which is going to make it an ETH staking hub. He also signaled that Linea can offer institutional and corporate participants attractive risk-adjusted returns.
Lubin further said that although SharpLink has not drawn up the complete plan, the potential for massive ETH staking on Linea would still be high. This would not only increase the treasury returns of SharpLink but also improve the Layer 2 ecosystem position of Linea within Ethereum.
SharpLink’s shares were in good shape, reflecting positive investor sentiment as they closed up 5.8% on Monday at $19.24. In the last one month, SBET has gone up by 22.8%, which is consistent with the upward trend of the Ethereum market and the increasing corporate appetite for digital asset treasuries.
