Public Companies Increase Ethereum Purchases Amid Market Rally

Public companies SharpLink and Bit Digital continue to accumulate Ethereum. The former acquired another batch of coins, while the latter will raise $67.3 million for new purchases.

On July 14, SharpLink purchased 24,371 ETH worth approximately $73.25 million. According to Arkham, the funds were transferred to Coinbase Prime.

This purchase is part of a strategy to increase reserves. In the last week of July alone, the company acquired over 50,000 ETH worth more than $73 million.

SharpLink began building its Ethereum treasury at the end of May, following a $425 million investment led by ConsenSys.

After the deal, ConsenSys CEO and Ethereum co-founder Joseph Lubin took over as chairman of SharpLink’s board.

Bit Digital and ETH

The Nasdaq-listed miner will raise $67.3 million to purchase Ethereum. The firm will issue 22 million ordinary shares at $3.06 each to institutional investors.

B. Riley Securities will underwrite the deal, with the offering expected to close on July 15.

“The company intends to use the net proceeds from the proposed offering to purchase Ethereum,” the statement said.

Previously, Bit Digital fully converted its Bitcoin reserves into Ethereum. The company holds 100,603 ETH valued at approximately $299 million.

According to a report for the SEC, preliminary revenue for the second quarter will range from $24.3 million to $26.9 million.

Market Situation

The companies’ actions occur amid a rise in Ethereum’s price. On July 11, the second-largest cryptocurrency by market capitalization surpassed the $3000 mark for the first time since February. At the time of writing, the asset is trading near $2986 (CoinGecko).

Corporate purchases coincide with an influx of funds into institutional Ethereum-based products. According to CoinShares, inflows totaled $990 million last week, marking the fourth-largest weekly figure in history. Positive momentum has been observed for 12 consecutive weeks.

Earlier, on July 10, SharpLink acquired 10,000 ETH from the Ethereum Foundation in a private over-the-counter deal worth $25.7 million.