SharpLink Gaming (SBET) stock rocketed on Tuesday after the gaming and esports betting company announced plans to create an Ethereum (ETH) treasury reserve. The company has raised $425 million through a private investment in public equity (PIPE) to fund its ETH acquisitions.
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Consensys Software was the lead investor in the PIPE, and founder and CEO Joseph Lubin will join SharpLink Gaming’s Board of Directors. Investors will also note that Lubin is one of the co-founders of Ethereum.
SharpLink Gaming stock was up 362.65% in pre-market trading today, following a 78.72% rally yesterday. Today’s surge easily erases the stock’s year-to-date and year-over-year declines.
Is SBET Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of SharpLink Gaming is slim. Instead, TipRanks’ AI Analyst offers insight into the stock’s potential. It provides a 40 Underperform rating, based on “weak financial performance, characterized by declining revenues and persistent losses.” However, this could change after today’s Ethereum treasury news.
