SharpLink Gaming stock (NASDAQ:SBET) has surged nearly 50% in the past week and remains up over 100% in the past month. So what has changed for the company in recent weeks? The gains are driven by investor enthusiasm surrounding the company’s bold foray into Ethereum. As of July 13, 2025, the company held 280,706 ETH, which it says makes it one of the largest corporate holders of the cryptocurrency.
While initially focused on online gaming and sports betting, SharpLink has increasingly focusing on blockchain-based finance while also integrating use of blockchain technology into its betting experience. The company has also adopted an aggressive ETH staking strategy, with over 99% of its holdings deployed in staking protocols to earn yield. Since launching the strategy last month, it has generated over 400 ETH in staking rewards. (related:Nvidia Stock To $200 As H200 Exports To China Resume?)
Is SharpLink Stock Attractive?
SharpLink Gaming is not easily valued using traditional financial metrics, because the stock is increasingly being viewed less as a conventional business and more as a proxy for its sizable crypto holdings. SharpLink Gaming has seen its top line grow at an average rate of 19.6% over the last 3 years compared to an increase of 5.5% for S&P 500, although sales have shrunk 27.0% in the last 12 months to just about $5 million. The company’s current market cap stands at over $2 billion, making its price to sales multiple stand at around 400x.
SharpLink Gaming’s profit margins are considerably worse than most companies in the Trefis coverage universe, with Operating Income over the last four quarters standing at $-4.0 million. That said, SharpLink Gaming’s balance sheet looks strong, with the company holding no debt.
The more relevant metric given the company’s pivot could be the “ETH Concentration,” which the company defines as the ETH held per 1,000 diluted shares. This figure has risen by 23% since mid-June, giving shareholders increasing exposure to the cryptocurrency. For investors looking to tap into Ethereum’s long-term upside via a regulated equity vehicle, without directly holding crypto assets, SharpLink could present a high-risk, high-reward alternative.
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