Is it really possible to buy ETH with unlimited bullets? SharpLink Gaming didn't only raise 400 million, how did it buy 280,000 ETH? The answer is "Yes and No". In fact, $SBET has raised more than 400 million? From May, June to July, he raised funds every month, with a total amount of more than $800 million. It's a bold guess that this behavior will continue. From the initial PIPE private placement to the ATM public offering, what changes have occurred to SBET? What is the market capitalization? What about EPS? What is the difference between a PIPE and an ATM? The risks and opportunities we need to know as investors are all covered in this article.

First, let's make a conceptual distinction. 1⃣️ PIPE (Private Investment in Public Equity) Refers to a public company privately issuing stocks to specific investors for financing. This process is relatively opaque and is usually for "strategic investment, attracting large investors." Participants are typically institutional investors. 2⃣️ ATM (At-the-Market Offering) Refers to a public company issuing stocks in real-time at market prices through the secondary market, with the company authorizing brokers to sell at market prices daily, allowing for flexible issuance. Both retail and institutional investors can buy, usually to raise funds opportunistically, optimize finances, and seize high stock price windows. In less than three months, SharpLink transitioned from a directed issuance to an ATM, and during the issuance process, the stock price continued to rise, clearly indicating that market interest and funds have strengthened. Both institutional and retail investors are rushing in. The main participants in the PIPE conducted on May 27 include: 💠 ConsenSys: Founded by Ethereum co-founder Joseph Lubin 🦅 Pantera Capital: A well-known crypto venture capital fund 📘 ARK Invest (market rumors, not officially disclosed) 🧠 Multicoin Capital (reported to participate in some token-related investments) Price approximately $6.15 per share Lock-up period: Some investors have a lock-up of 90 days to 6 months (including Lubin) The ATM conducted from July 7-11, 2025 Subscription structure: 📊 Reports suggest BlackRock and Fidelity Digital are gradually building positions in the secondary market 📢 Some Robinhood & SoFi customers are actively participating among retail investors 📉 Market makers Citadel and Virtu provide liquidity support.

Issuing more shares comes at a cost: 1⃣️ Significant capital expansion: from about 26M shares → about 120M shares, an increase of approximately 4.6 times → substantial dilution of earnings per share. 2⃣️ Significant decline in EPS: even though the company is still losing money, the diluted loss is reduced, and future profitability indicators decline significantly. 3⃣️ Background of valuation changes: valuation from pre-PIPE market cap of $425M → post-ATM market cap of $1.2B → reflecting the market's high expectations for the ETH strategy; What actually supports this price is the narrative of ETH revival, rather than real profits. So if we want to calculate the profits, how much can the profits be? 1⃣️ ETH staking yield (estimated annualized 6%) 2⃣️ Unrealized gains from holding ETH (why do we say it's unrealized? Because it's highly likely that it can't be sold) Assuming they hold ETH unchanged, let's make a bold estimate Based on this income level, let's calculate the EPS, corresponding EPS are: 1⃣️ 9.5; 2⃣️ 5.5; 3⃣️ 1.8

So is continuing the issuance good or bad? This is a very critical question: Can SBET increase the amount of ETH per share by continuing ATM financing + buying ETH? Let's analyze the scenarios one by one, combining the relationship between "stock price vs ETH price". The core logic is as follows: 📌 Core Variables 🌟 Amount of ETH per share = Total ETH of the company / Total shares If SBET's stock price rises → Financing efficiency increases → More cash can be obtained for fewer shares to buy ETH If ETH price falls → More ETH can be bought for less cash But the key is: Which is faster, the growth rate of ETH vs the dilution rate of shares? There are a total of four scenarios, I will analyze the two core ones: 1⃣️ Bull Market: SBET's increase > ETH 🟢 ✅ Most favorable situation Stock price rises quickly → The company raises more cash with fewer shares ETH price rises slowly → It's still cheap when buying → Result: New financing buys more ETH, increasing the amount of ETH per share Bear Market: SBET's decline > ETH 🔴 Maximum risk Financing ability rapidly weakens (the more it falls, the less people subscribe) ETH price is low, but unable to buy enough Significant dilution of shares, even financing failure → Amount of ETH per share plummets At this point, I believe those who understand will understand. I hope we all have a bright future.