The persisting crypto market bloodbath has lured many crypto holders into serious states of panic. Renowned sports betting firm SharpLink appears to be unmoved by the market downturn, as it has shown courage with a bold dip buy on Ethereum, as disclosed by on-chain data provider Lookonchain.
According to the data, SharpLink purchased a massive 176,271 ETH tokens around the mid-hours of June 13, sparking debates among market participants.
The huge Ether accumulation happened when ETH was trading at an average price of $2,626 per token, causing the company to spend a total of $462.95 million on the purchase, including total fees and expenses.
SharpLink’s large Ethereum accumulation follows its decision to make ETH its primary treasury reserve asset. While SharpLink has not clearly stated its reason for choosing ETH for its corporate accumulation strategy, it appears that the token’s crucial role as a programmable, yield-bearing digital asset aligns with its core objectives.
Although the move has triggered discussions across the broad crypto ecosystem, it comes as no surprise, as the company had initially hinted at the massive ETH accumulation as part of its latest plan to launch an Ethereum-based treasury strategy.
Following the significant ETH buy, SharpLink has officially emerged as the largest publicly traded ETH holder across the globe, outshining previous existing ETH holders.
While the large acquisition of ETH by SharpLink has yet to directly impact the price performance of Ethereum, the token has continued to experience a deeper plunge despite the hype surrounding the move.
However, the move marks a major milestone in the institutional adoption of Ethereum, positioning the second-largest cryptocurrency by market capitalization towards reaching mainstream appeal.
While ETH has yet to respond to this massive buy in terms of price performance, the move has seen SharpLink contribute positively to the network’s long-term security, as over 95% of the company’s large ETH holdings were deployed in staking and liquid staking solutions.
SharpLink’s ETH holdings underwater
While Ethereum has continued to decline despite the huge buy activity, market watchers consider SharpLink’s bold move as improperly calculated and recklessly timed.
Although the fate of SharpLink and its shares is currently uncertain with current market conditions, the company is already witnessing notable losses in its ETH fortune, as the price has slumped harder than the acquisition price.
With ETH trading at $2,513 as of press time, SharpLink has suffered losses worth about $20 million since its latest ETH buy. If the negative market trajectory persists, ETH will suffer further losses.
