Shares of sports betting platform Sharplink Gaming fell 73% in after-hours trading Thursday after the company quickly registered a large number of shares in potentially reselling.
But Sharplink gaming chairman Joseph Lubin, who is also the CEO of blockchain software company Consensys, said market observers misunderstood the document.
Lubin says he and the consensus do not sell stocks
lubin explain In a Wednesday article, “Some are misunderstanding” Sharplink’s Form S-3 Register A potential resale of nearly 58.7 million shares of common stock was registered with the Securities and Exchange Commission.
Lubin reiterated that it is registering a “potential resale” of the stock, rather than actually selling it. “This is a standard post-filling procedure for TradFI, not a sign of actual sales,” Lubin said.
The document was presented when the company prepared the important ether (eth) Purchase is part of its newly announced Ethereum-based fiscal policy strategy.
Sharplink Gaming (SBET) shares closed Thursday, down 12.25% to $32.53, and then fell to 73% a few hours later, to below $8 registered, according to for Google Finance.
It has since recovered slightly, down 67.6% and traded at $10.55 at the time of publication.
Matt Corva, General Counsel at Consenys explain The document “does not reflect anyone’s sales that may or may never happen, I don’t know. But it’s a basic filing.”
Sharplink application is not a new announcement
Corva said the news was revealed two weeks ago, “This is an official statement that SBET sold these shares to investors and it is important.”
On May 30, Sharplink Games Say Plan to sell up to $1 billion in common The majority of the stock’s earnings are intended to acquire ETH, just a few days after it stated that it adopted an Ethereum-focused treasury strategy.
Lubin clarified that neither he nor Consensus sold any shares. Consenys recently led $425 million in Sharplink Gaming’s funding for Ethereum’s treasury strategy.
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Charles Allen, CEO of BTCS Inc. Comment Understandably, the application triggered panic among existing shareholders. “It creates a plight for prisoners: Everyone is anxious to sell before others do it – a classic game,” he said.
Allen suggests that the company could reverse those losses by announcing an expected $1 billion ether purchase tomorrow. “If they play the right card, there will be a $1B ETH purchase tomorrow, which could cause a surprise PR, which could ignite the game to reignite the stock,” Allen said.
“They may have performed well,” he said.
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This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
