SharpLink Gaming Plunges 70% After Hours Amid Share Resale Filing — But Bigger Plans Might Be Underway

SharpLink Gaming (SBET), a Nasdaq-listed firm focused on building an Ethereum (ETH) treasury, saw its shares plummet 70% in after-hours trading on Thursday following a new filing with the U.S. Securities and Exchange Commission.

The company filed an S-3ASR registration statement, clearing the way for over 58 million shares linked to its recent private investment in public equity (PIPE) financing to be resold on the market. This move potentially opened the floodgates for more than 100 PIPE investors to offload shares, triggering a sharp post-market sell-off.

Charles Allen, CEO of BTCS—another publicly traded firm pursuing crypto treasury strategies—explained on X (formerly Twitter) and in a CoinDesk interview that the filing likely caused the sudden pressure on SharpLink’s stock.

Earlier this month, SharpLink raised $450 million through a PIPE round, attracting heavyweight investors like ConsenSys, Galaxy Digital, and Pantera Capital. Ethereum co-founder and ConsenSys CEO Joseph Lubin also joined SharpLink’s board as chairman, signaling strong backing for its ETH reserve approach.

However, Allen hinted that this dramatic stock drop might be part of a bigger play. According to his analysis, SharpLink could be quietly preparing to deploy up to $1 billion to purchase more ETH through an at-the-market (ATM) offering announced in a late May SEC filing.

“If the company times this right, we could see a surprise announcement soon about $1 billion in ETH buys—potentially sparking a major rebound in the stock,” Allen suggested on X.

Meanwhile, Ethereum’s price declined roughly 4.1% over the past 24 hours, trading near $2,650, alongside broader weakness in Bitcoin and crypto markets.