SBET Stock Dips Despite Bullish Call Amid Crypto Selloff – Analyst Flags ‘Unique Position’ Against BMNR, ETHM

• H.C. Wainwright wrote in a note to investors that SharpLink Gaming is at a “unique inflection point”.
• The firm highlighted that the company has no debt and a full balance sheet to borrow against.
• SharpLink is the second-largest corporate holder of Ethereum after Tom Lee-backed Bitmine Immersion Technologies.

Shares of SharpLink Gaming (SBET) dipped in pre-market trade on Tuesday despite H.C. Wainwright initiating coverage with a ‘Buy’ rating and a price target of $10. 

The firm said SharpLink Gaming has a “unique position relative to almost every other Ethereum accumulation company in the public sphere,” in a note to investors cited by TheFly. Companies listed on public markets focused on accumulating Ethereum (ETH) include only Tom Lee-backed Bitmine Immersion Technologies (BMNR) and The Ether Machine (ETHM).

ETHZilla, which had pivoted to an Ethereum treasury last year, rebranded to Forum Markets  (FRMM) last year with a new goal of tokenizing real-world assets (RWAs) instead of accumulating the leading altcoin. Bit Digital (BTBT), Coinbase Global (COIN), Galaxy Digital (GLXY), and Bullish (BLSH) also have Ethereum on their balance sheets, alongside other cryptocurrency tokens. 

SBET’s stock dropped over 2% in pre-market trade, dragged lower by the selloff in the cryptocurrency market. On Stocktwits, retail sentiment around the shares remained in ‘bullish’ territory, accompanied by ‘high’ levels of chatter over the past day. 

Ethereum’s price tumbled 2.7% in the last 24 hours, falling below the $2,100 support level. Retail sentiment on Stocktwits around the altcoin remained in ‘bearish’ territory over the past day, accompanied by ‘normal’ levels of chatter. 

In its note to investors, H.C. Wainwright analyst said that SharpLink Gaming carries no debt and has a full balance to borrow against. The firm said it believes the company is at a “unique inflection point.”

SharpLink Gaming VS Bitmine Immersion Technologies

SharpLink Gaming is the second-largest corporate holder of Ethereum, after Bitmine, with around 868,699 ETH on its balance sheet, according to CoinGecko data. Unlike Bitmine, SharpLink Gaming has been more conservative about its Ethereum purchases. Bitmine announced on Monday that it has made its largest weekly purchase of the year, of over 71,000 Ethereum (ETH). 

Bitmine now holds 4,803,334 ETH, which accounts for about 3.98% of the altcoin’s total circulating supply. It has staked around 3,334,637 Ethereum, worth around $7.1 billion. Meanwhile, SBET has staked the entirety of its treasury to generate returns. The company gives investors consistent annualized returns between 4% and 5%. 

SBET’s stock has fallen over 30% year-to-date, while BMNR’s stock is down more than 26%. 

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