SharpLink plans to introduce leverage? Ethereum founder Lubin: Considering the issuance of convertible bonds.

The American online gaming company SharpLink announced at the end of May its strategic entry into the Ether (ETH) reserve, and purchased ETH through a private sale of $425 million. Ethereum co-founder Joe Lubin stated in an interview this morning on 6/27 that he plans to introduce some leverage operations for SharpLink, such as issuing convertible bonds. He emphasized that the leverage strategy will be carried out prudently and will not be too aggressive.

Sharplink raised $425 million after its transformation, with stock prices soaring and then plummeting.

Originally a sports betting and online gaming company, SharpLink Gaming announced at the end of May its transformation into an Ether (ETH) reserve enterprise, raising $425 million through a private sale to purchase ETH. The stock price soared from $27.23 to $124.12, a staggering increase of 355.8%.

However, Sharplink submitted an S-3 form to the SEC on June 11, registering over 58.7 million shares for potential future resale, which the market interpreted as a "large sell-off," causing the stock to plunge to $31.87, with an intraday loss of nearly 74%. Lubin emphasized that this is a normal process and does not affect overall development.

The chart shows the dramatic increase since SharpLink transformed into an Ether reserve company. Sharplink is considering introducing leverage, issuing bonds, and convertible equity.

During an interview this morning, Lubin stated that Sharplink is currently not using leverage but is considering ways to introduce leverage. For example, convertible bonds could be issued at low interest rates for long-term bonds, using a more conservative strategy to avoid being in a risky position.

He added that after the news of the private sale phase was released, it attracted a large number of investors, and there are still many investors actively inquiring about investment opportunities. Lubin stated:

We will soon see more Ether flowing into Sharplink.

MicroStrategy drives the trend of corporate transformation, but the issue of risk transfer still exists.

Lubin stated that all of this operation was inspired by the founder of MicroStrategy (Strategy), Michael Saylor. He said:

"Saylor's model proves that transforming into a cryptocurrency asset reserve company is not only strategically significant but also brings astonishing returns."

In response to the market's differing views on BTC and ETH, Lubin candidly stated: "BTC holds a first-mover advantage, serving as decentralized digital gold, while Ethereum is the most promising next-generation network infrastructure."

With MicroStrategy ( Strategy ) driving the trend of listed companies accumulating coins, companies like Upexi and Janover have started to adopt SOL reserves, while Tron founder Justin Sun has utilized the listed company SRM to adopt TRX reserves. Other companies like GameStop and Trump Media are also attempting to attract investors by combining stocks and crypto assets. Looking at past examples, many of these crypto concept stocks have been able to achieve several times impressive gains in the early stages.

However, the author believes that investors should clarify the reasons why these companies are investing in crypto asset reserves, and what actual niches it brings, such as: hedging themes, tax savings, convenience, etc., only then could there be reasonable upward momentum.

( Not every company can be a MicroStrategy: Looking at the 70% drop of Sharplink, what risks do crypto reserve companies face )

Is SharpLink planning to introduce leverage? Ethereum founder Lubin: Considering the issuance of convertible bonds first appeared in Chain News ABMedia.