SharpLink Gaming is transforming into the world's largest Ethereum (ETH) reserve enterprise. The mastermind Joseph Lubin, who is not only the chairman but also a co-founder of Ethereum, clearly stated in a Bloomberg interview that the company is evaluating leveraging its position through convertible equity and long-term bonds, immediately reminding the market of Michael Saylor's strategy of turning MicroStrategy into a Bitcoin whale.
ETH Whale's Path
SharpLink Gaming's transformation began with a $425 million private placement completed in May 2025, with ConsenSys Software Inc. as the lead investor. SharpLink Gaming subsequently purchased 176,270.69 ETH at an average price of $2,626, with a total cost of approximately $463 million.
By late June, its holdings expanded to 188,478 ETH, with over 95% staked, generating over 120 ETH in native yield in just one month. Joseph Lubin emphasized:
"We will consider a small amount of leverage, such as convertible equity and low-interest long-term bonds, but absolutely will not let the strategy fall into risk."
Learning Saylor's Model
Michael Saylor's MicroStrategy (now named Strategy) has been accumulating large amounts of Bitcoin since 2020 through zero-coupon convertible bonds, preferred shares, and ATM stock issuance, currently holding over 592,000 BTC.
SharpLink's operational structure is also highly similar: first raising funds through private equity and ATM issuance, then introducing convertible equity and long-term bonds to amplify its position. Lubin praised Saylor's pioneering approach:
"Saylor showed me how effective it can be to turn a company into a crypto asset carrier."
SharpLink's Next Risk
The leveraging strategy carries high volatility and debt burden risks. SharpLink's stock price plummeted 69% after the private placement, which is a warning from investors. The company must maintain a balance between expansion and dilution, while ensuring that staking yields sufficiently cover interest costs.
SharpLink is targeting the world's central bank's Ethereum goals and injecting the narrative of the "first Ethereum reserve merchant" in the "crypto currency Treasury company" model, potentially rewriting corporate asset allocation coordinates.
