SharpLink Gaming, Inc.

SharpLink Gaming (SBET) was originally a marketing technology company focused on the sports betting and online gaming (iGaming) industry, providing user acquisition and conversion services. In May 2025, SBET announced a transformation of its business model to a company with Ethereum (ETH) as its core financial reserve asset through $425 million in private financing. Its cryptocurrency-related business model includes: Ethereum ( ETH ) asset holding: SBET allocates most of its assets to ETH with the aim of achieving long-term asset appreciation through holding ETH. This model transforms it from a traditional gambling marketing company into a hybrid enterprise that combines traditional business with cryptocurrency asset management. ETH Staking: SBET uses its held ETH for staking on the Ethereum network, participating in Ethereum's PoS (Proof of Stake) consensus mechanism to earn network rewards. Combining stocks and cryptocurrencies: SBET, through its publicly listed company status (NASDAQ: SBET), provides traditional stock market investors with an indirect investment opportunity in ETH, with its stock price highly correlated to the price of ETH. Retain traditional business: Although cryptocurrency has become a core asset, SBET continues to operate its sports betting and iGaming marketing business to provide cash flow support for cryptocurrency investments. Summary: The business model of SBET is centered around holding and staking ETH, combined with traditional gambling marketing operations, providing investors with exposure to ETH through the stock market, thus forming a bridge between traditional finance and the cryptocurrency market.

The profit model of SBET in the cryptocurrency market mainly includes the following aspects: ETH Price Appreciation: SBET profits from the increase in ETH price by holding a large amount of ETH (280,706 ETH as of July 13, 2025). For example, if the ETH price rises from approximately $2,500 in May 2025 to about $2,990 in July, its asset value significantly increases. ETH Staking Earnings: By staking ETH on the Ethereum network, SBET earns staking rewards. According to post X, it has earned 415 ETH through staking (as of July 13, 2025), valued at approximately 1.24 million dollars based on the ETH price at that time. Stock market premium: The stock price of SBET is linked to its ETH reserve value, attracting investors who hope to invest in cryptocurrency through traditional markets, potentially profiting from the stock premium. Traditional business cash flow: SBET's betting marketing business continues to generate revenue, providing cash flow support for its cryptocurrency investments (such as purchasing more ETH or operating costs).

The profit model of SBET has the following roles and significance in the cryptocurrency market: Providing traditional investors with exposure to ETH: SBET offers a way for investors unfamiliar with cryptocurrency wallets or exchanges to invest in ETH through the stock market, lowering the barrier to entry into the crypto market. Promoting institutions to adopt cryptocurrency: SBET, as a publicly listed company, holds a large amount of ETH, indicating the feasibility of cryptocurrency as an institutional-grade asset, which may encourage other companies to follow suit and increase the market recognition of ETH. Enhance financial flexibility: ETH staking provides stable returns, while traditional business offers cash flow, jointly supporting SBET's long-term strategy in the cryptocurrency market. Risks and opportunities coexist: its profit model is highly dependent on ETH price fluctuations. If the ETH price falls, it may lead to a decrease in asset value; conversely, a ETH bull market (such as the market prediction for 2025 where ETH breaks $4,000) will significantly enhance its profitability.

The business and profit model of SBET mainly affects the following types of cryptocurrencies: Ethereum ( ETH ): Direct impact: SBET holds 280,706 ETH (approximately 0.23% of the total supply of ETH), increasing market demand for ETH through buying and holding, which may have a slight supportive effect on the price. Staking Impact: By staking ETH, SBET provides security and liquidity support for the Ethereum network, enhancing the decentralization and stability of the network. Market Confidence: As a publicly listed company, its publicly disclosed ETH reserves and profit data may enhance institutional investors' confidence in ETH, especially in the context of the 2025 Ethereum ecosystem (such as Layer 2 expansion and DeFi growth). Other cryptocurrencies: Indirect influence: SBET's business focuses on ETH, and there is no direct involvement in holding or trading other cryptocurrencies (such as BTC, SOL, USDT, etc.). Its impact on other coins mainly comes from the overall transmission effect of ETH price fluctuations on the cryptocurrency market. For example, an increase in ETH price may drive market sentiment for DeFi-related tokens or Layer 2 tokens (such as ARB, OP). How to influence: Demand support: SBET increases market demand by continuously purchasing ETH, especially after its large-scale ETH acquisition following the $425 million financing. Network support: Staked ETH enhances the security of the Ethereum network, indirectly supporting the stable development of the ETH ecosystem (such as DeFi and NFTs). Market signal: The success of SBET may attract more institutional investors into the ETH market, driving mainstream acceptance of Ethereum.