Ethereum Foundation Sells 10,000 ETH to SharpLink in First-Such OTC Deal
The Ethereum Foundation (EF) has executed its first-ever direct sale of Ether (ETH) to a publicly listed company. SharpLink Gaming (SBET), listed on Nasdaq, purchased 10,000 ETH for $25.7 million in an over-the-counter (OTC) transaction completed on July 10th. The average price per ETH was $2,572.37, with the settlement occurring on-chain via the EF’s multi-signature wallet.
This significant transaction marks a new precedent in the relationship between the Ethereum Foundation and publicly traded entities. The proceeds will bolster the EF’s core operational activities. SharpLink’s acquisition, however, is framed not as a speculative trade but as a strategic investment aligned with Ethereum’s long-term vision.
The company intends to utilize the acquired ETH as its primary treasury reserve asset, committing to staking and restaking the tokens. This action effectively removes the ETH from active circulation, contributing to the overall health and stability of the Ethereum ecosystem. Joseph Lubin, Chairman of SharpLink and a co-founder of Ethereum, emphasized this commitment, highlighting SharpLink’s role as responsible industry stewards.
Lubin’s statement positioned the transaction as more than a simple financial exchange; it’s presented as a model for collaborative engagement between mission-driven organizations and the Ethereum ecosystem. This model prioritizes decentralized principles, economic empowerment, and the advancement of protocol-native finance.
The timing of this deal is noteworthy, coinciding with a surge in ETH ETF inflows, a resurgence of ETH-denominated treasuries, and renewed interest in protocol-native finance. The price of ETH exceeded $3,000 on the morning of the announcement, showcasing a robust market performance with an over 8% increase in the preceding 24 hours. This transaction underscores the growing institutional adoption of ETH and its increasing importance in the evolving cryptocurrency landscape. SharpLink’s move signals a broader trend of publicly traded companies recognizing the long-term value and strategic advantages of holding and staking ETH.
