- SharpLink Gaming, Inc. completed a $76.5 million equity sale to an institutional investor through a registered direct offering.
- The Ethereum price witnesses a short-term correction trend amid the formation of a flag pattern.
- ETH’s fear and greed dropped to 29%, reflecting an uncertain and bearish sentiment among market participants.
On Tuesday, October 16th, the crypto market experienced a second wave of selling pressure, resulting in a 24-hour liquidation of $692.59 million. As a result, the Bitcoin price dived below the $108,000 mark, while Ethereum plunged to $3,900. While the mounting selling pressure hints at the risk of prolonged correction, corporate adoption of ETH continues to strengthen—underscored by a new development from SharpLink Gaming, Inc.
SharpLink Plans to Expand Ethereum Holdings Through $76.5M Equity Raise
SharpLink Gaming, Inc. (Nasdaq: SBET) announced on Wednesday that it has closed a deal with an institutional investor for the sale of 4.5 million common shares at a price of $17 per share, for a deal valued at around $76.5 million. The sale price represents a 12% premium over SharpLink’s closing price on October 15th of 2017, at $15.15, and is higher than the firm’s estimated net asset value per share on the basis of its Ethereum holdings, which currently total 840,124 ETH.
The transaction, which is anticipated to close out on or around October 17, 2025, is organized as a registered direct offering. According to SharpLink, the equity sale will be conducted under ordinary conditions of closing and does not include any warrants or convertible securities.
As part of the agreement, the participating investor also obtained a 90-day premium purchase contract granting the right of pre-purchase of up to an additional 4.5 million shares at $17.50 each before January 15, 2026. Should this option be fully exercised, SharpLink would raise a further $78.8 million in gross proceeds.
Co-CEO Joseph Chalom described the financing as “the first of its kind for the company,” noting that it is “a novel equity sale transaction that is both accretive to stockholders and strategically structured, reflecting strong institutional confidence in SharpLink and our long-term vision.”
Chalom stated that “By raising equity at a meaningful premium to both market price and NAV, we’re able to continue accumulating ETH and increasing ETH-per-share for our investors.”
SharpLink, which has firmly established itself as one of the largest corporate holders of Ether, is still concentrated on Ethereum’s broader role in digital finance. “Each day brings new evidence of accelerating retail and institutional adoption of Ethereum across stablecoins, tokenized assets, and DeFi. “We remain bullish on the long-term Ethereum opportunity,” Chalom said.
Ethereum Price Heading For a Major Support Test
Entering the second half of October, the Ethereum price witnessed a bearish turnaround from the $4,300 level and plunged over 10.3% in value to currently trade at $3,853. The selling pressure aligns with a broader market correction as the US-China trade tension continues to hurt market sentiment.
With sustained selling, the coin price could plunge another 5.5% before having a major support test at the bottom trendline of a bull flag pattern at $3,640. Since mid-August 2025, the Ethereum price has been resonating between the two down-sloping trendlines of this pattern, theoretically reflecting a short correction to recuperate the exhausted bullish momentum.
If the pattern holds true, the Ethereum price is likely to rebound from the bottom trendline and chase a potential 26% surge before the flag breakout. However, with the current market uncertainty, a risk of downside breakdown persists.
If the price breaks below the bottom trendline with the daily candle closing, the selling pressure would accelerate and the price may enter a prolonged correction towards the $3000 psychological level.
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