Ethereum Foundation Sells 10,000 ETH to SharpLink in Landmark OTC Deal
The Ethereum Foundation has completed a significant over-the-counter (OTC) transaction, selling 10,000 ETH to SharpLink Gaming for $25.7 million. This marks the first instance of a publicly listed company directly acquiring ETH from the foundation, signaling a growing commitment to the cryptocurrency as a treasury reserve asset.
The deal, executed at an average price of $2,572.37 per ETH, saw the funds settled on-chain via the foundation's multisig wallet on July 10. The proceeds will be allocated to support the Ethereum Foundation's ongoing core activities.
Key Takeaways
- SharpLink Gaming, trading as SBET, has acquired 10,000 ETH from the Ethereum Foundation in a $25.7 million OTC deal.
- This is the first direct ETH acquisition by a publicly traded company from the Foundation.
- SharpLink intends to stake and restake the acquired ETH, effectively reducing its circulating supply.
- The transaction occurs amidst increasing ETH ETF inflows and renewed interest in protocol-native finance.
A Strategic Commitment to Ethereum
SharpLink Gaming views this acquisition not merely as a trade, but as a "commitment to Ethereum’s long-term mission." The company plans to integrate the acquired ETH into its treasury reserves, with intentions to stake and restake it. This strategy aims to bolster the Ethereum ecosystem by reducing the available supply of ETH.
Joseph Lubin, Chairman of SharpLink and a co-founder of Ethereum, emphasized the significance of the move. "SharpLink is acquiring, staking and restaking ETH as responsible industry stewards, removing supply from circulation and reinforcing the health of the Ethereum ecosystem," Lubin stated. He further suggested this could serve as a model for other mission-driven organizations looking to support decentralization and economic empowerment within the ecosystem.
Market Context and Future Implications
This transaction occurs at a time of heightened activity and interest in Ethereum. The cryptocurrency has seen substantial inflows into ETH Exchange Traded Funds (ETFs) and a resurgence in focus on protocol-native finance. At the time of reporting, ETH was trading above $3,000, reflecting a positive market sentiment and an 8% increase in the preceding 24 hours.
The Ethereum Foundation's sale, while a notable event, is part of its broader strategy to fund its operations and support the continued development and growth of the Ethereum network.