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SharpLink Gaming Faces Sharp Decline After ETH Purchase

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 6/17/2025, 11:32 am ET | 4 min
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In this article

  • SBET-3.54%
    SBET - NASDAQSharpLink Gaming Inc.
    $22.69-0.83 (-3.54%)
    Volume:  24.36M
    Float:  55.60M
    $21.38Day Low/High$23.78

SharpLink Gaming Inc.’s stocks have been trading down by -12.38 percent amid market uncertainty and strategic shifts.

Candlestick Chart

Live Update At 11:31:57 EST: On Tuesday, June 17, 2025 SharpLink Gaming Inc. stock [NASDAQ: SBET] is trending down by -12.38%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

SharpLink Gaming, identified by the ticker SBET, has recently seen drastic shifts in its market performance. The company’s revenue sits at $3.66M, with a priceto-sales ratio standing at 5.13. However, the profitability metrics tell a different story with a negative pretax profit margin of -170.6, indicating significant challenges. The firm’s return on equity plummets to -84%, reflecting adverse investor conditions, aligned with their drastic handling of acquisitions and expansions.

Their attempts at raising funds through secondary offerings and asset acquisitions have led to further debts, impacting the leverage ratio of 1.3, which is moderately high. Looking at the fluctuating stock prices, a steep dive from $76.7 on May 30, 2025, to $11.75 by June 16, 2025, highlights the uncertainty and lack of confidence hovering in the markets.

Recent Strategic Moves: Market Reactions

SharpLink Gaming’s decision to purchase $462M worth of Ether has stirred controversy. This bold move was meant to position SBET within the cryptocurrency market and anticipate future gains. Yet, as the ether prices wobble, investors grow wary. The supplementary $79M fundraising might not be enough to stabilize the company’s trajectory, especially with secondary offerings spelling potential dilution of current shares.

A plunge of 67% post these developments indicates a colossal shake-up, resulting in a stock price of merely $11.75. The strategic intent remains opaque to stakeholders who are unsure if these steps would lead to profitable returns. A previously announced secondary offering of 58.7M shares also added to the downward pressure, likely signaling the emergence of cash flow issues.

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Conclusion

The series of recent bold moves from SharpLink Gaming underscores an acute need for their management to reassess strategies. The dual decisions involving Ether acquisitions and share offerings appear to have rattled traders, questioning the company’s financial stability and long-term vision. Though intended to stimulate growth and diversification, these actions failed to yield immediate positive results.

As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This perspective might serve as a vital lesson for SharpLink Gaming, as their recent strategies seem more akin to chasing fast returns than steady growth. With continued volatility and the market’s unfaltering scrutiny over SBET’s steps, the company must act promptly to secure trust and stabilize its stock value. The focus should shift towards clear communication of their roadmap and potential profitability, reassuring stakeholders. Only time and strategic discretion will determine if SharpLink Gaming can rebound and set course for a sustainable future.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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