$SharpLink Gaming (SBET.US)$ We’re seeing one of those frust...
$SharpLink Gaming (SBET.US)$ We’re seeing one of those frustrating SBET trading sessions where Ethereum is powering higher—now around $4,414—yet SBET is barely budging, sitting at $21.96. On the surface, this feels like a disconnect, but when you dig into what’s happening behind the scenes, it starts to make more sense.
Yesterday, SBET announced and priced a massive registered direct offering to institutional investors: 18,382,353 shares at $21.76 per share. That’s roughly $400 million gross, or about $390 million net after $10 million in placement and advisory fees to A.G.P. and Cantor. This is not a slow-drip ATM program—it’s a block deal, all priced in one shot, and it’s set to close around today. When deals like this price, the new investors often hedge their position immediately—either by shorting into the market or locking in spreads elsewhere. The result is what we’re seeing this morning: SBET trading in a very tight range right around the deal price, with any push higher being met with selling as the allocation stock is absorbed.
That’s why, despite ETH’s sharp rally, SBET isn’t moving in step today. The pressure isn’t from a sudden wave of ATM issuance—it’s from the mechanics of placing $400M worth of new shares into the market. Once those shares are placed and hedges are unwound, that weight should start to lift.
The other thing people are asking is, “Where’s the Tuesday holdings report?” Normally, SBET drops that update like clockwork. The last one, on August 3, showed 521,939 ETH held and $264.5M raised via ATM in the prior week. Today’s absence is likely not accidental. There are two probable reasons: either the report is being held until the financing officially closes (so they can include the updated share count and ETH buys), or they’re intentionally pushing the update to Friday’s call to package the numbers with more context. If they’ve already started deploying some of this $390M into ETH over the last 24–48 hours, the holdings update could look dramatically different, especially with ETH’s price ripping higher.
So, should holders panic? In my view, no—today’s action is more about deal digestion than a change in SBET’s long-term thesis. The financing massively increases their firepower to buy ETH, and at current ETH prices, that means their ETH-per-share leverage could climb sharply once the dust settles. The frustration comes from watching ETH climb while SBET feels stuck, but that’s a temporary side effect of bringing such a large chunk of stock to market in one shot.
The real inflection point will be when the market gets the updated ETH holdings—whether later today, tomorrow, or during Friday’s call. If that number shows aggressive buying with the new cash, SBET could quickly break away from this $21.76–$22 “deal price gravity” and resume trading more in line with ETH’s moves. Until then, the stock is in a short-term holding pattern while the institutions finish their part of the process.
Yesterday, SBET announced and priced a massive registered direct offering to institutional investors: 18,382,353 shares at $21.76 per share. That’s roughly $400 million gross, or about $390 million net after $10 million in placement and advisory fees to A.G.P. and Cantor. This is not a slow-drip ATM program—it’s a block deal, all priced in one shot, and it’s set to close around today. When deals like this price, the new investors often hedge their position immediately—either by shorting into the market or locking in spreads elsewhere. The result is what we’re seeing this morning: SBET trading in a very tight range right around the deal price, with any push higher being met with selling as the allocation stock is absorbed.
That’s why, despite ETH’s sharp rally, SBET isn’t moving in step today. The pressure isn’t from a sudden wave of ATM issuance—it’s from the mechanics of placing $400M worth of new shares into the market. Once those shares are placed and hedges are unwound, that weight should start to lift.
The other thing people are asking is, “Where’s the Tuesday holdings report?” Normally, SBET drops that update like clockwork. The last one, on August 3, showed 521,939 ETH held and $264.5M raised via ATM in the prior week. Today’s absence is likely not accidental. There are two probable reasons: either the report is being held until the financing officially closes (so they can include the updated share count and ETH buys), or they’re intentionally pushing the update to Friday’s call to package the numbers with more context. If they’ve already started deploying some of this $390M into ETH over the last 24–48 hours, the holdings update could look dramatically different, especially with ETH’s price ripping higher.
So, should holders panic? In my view, no—today’s action is more about deal digestion than a change in SBET’s long-term thesis. The financing massively increases their firepower to buy ETH, and at current ETH prices, that means their ETH-per-share leverage could climb sharply once the dust settles. The frustration comes from watching ETH climb while SBET feels stuck, but that’s a temporary side effect of bringing such a large chunk of stock to market in one shot.
The real inflection point will be when the market gets the updated ETH holdings—whether later today, tomorrow, or during Friday’s call. If that number shows aggressive buying with the new cash, SBET could quickly break away from this $21.76–$22 “deal price gravity” and resume trading more in line with ETH’s moves. Until then, the stock is in a short-term holding pattern while the institutions finish their part of the process.
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HyNee : Intelligent insight
This gentleman is obviously very well read. Let us hope his theory is correct