SharpLink Buys Ethereum Despite Market Slump, Institutional Investor Share Tops 46%

▲ Ethereum (ETH)

Amid extreme volatility in the cryptocurrency market, a company strategically accumulating Ethereum (ETH) and expanding its holdings is drawing attention. SharpLink Gaming (SHLP), an Ethereum treasury-focused firm, recently announced that its Ethereum reserves have increased and that institutional investor inflows have reached an all-time high.

According to a 13F report filed with the U.S. Securities and Exchange Commission (SEC), institutional ownership of the company’s shares (SBET) surged to 46% as of December 31, 2025. During the reporting period, approximately 60 new institutional investors added positions in SharpLink, bolstering its capital base. Formerly known as SharpLink Gaming and focused on gambling marketing, the company shifted its business model toward cryptocurrency last year, rebranded as SharpLink, and introduced a new slogan: “Ethereum with an edge.”

SharpLink currently holds a total of 867,798 ETH, valued at approximately $1.68 billion at current prices. This marks a slight increase from figures announced last December, with nearly 100% of its holdings staked, contributing to asset growth through staking rewards. Joseph Chalom, CEO of SharpLink, stated, “The record level of institutional ownership demonstrates that sophisticated investors trust our disciplined execution and institutional-grade risk management,” emphasizing that the company remains focused on creating long-term value for shareholders regardless of asset price fluctuations.

Market conditions, however, remain challenging. Ethereum’s price has fallen more than 60% from its peak of $4,946 last August to around $1,939 currently. As a result, major Ethereum treasury firms are recording substantial unrealized losses. Data analytics firm DropsTab estimates SharpLink’s paper losses at approximately $1.39 billion. Industry leader BitMine Immersion Technologies is also reportedly facing valuation losses nearing $8.1 billion.

Despite the downturn, Mandy Campbell, Chief Marketing Officer of SharpLink, said the company’s brand revamp will further strengthen its core values of transparency, measurable results, and advocacy for Ethereum. Beyond simply accumulating assets, the firm aims to maximize productivity through staking strategies. In a recent interview, CEO Chalom added, “Our goal for 2026 is not reckless accumulation but differentiation as a disciplined and fundamentally sound digital asset treasury company.”

As concerns persist over further declines in Ethereum’s price, market watchers are closely monitoring whether corporate-led accumulation by firms like SharpLink can provide downside support. Continued institutional inflows signal confidence in the long-term growth potential of the Ethereum ecosystem, but additional volatility driven by changes in the macroeconomic environment remains a key risk factor.

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