Why SharpLink Gaming, Inc. (SBET) Surged Last Week

We recently published a list of Small Stocks, But Explosive: These 10 Firms Crushed The Market Last Week. In this article, we are going to take a look at where SharpLink Gaming, Inc. (NASDAQ:SBET) stands against other firms that led last week’s charge.

SharpLink Gaming skyrocketed by 1,041 percent week-on-week following news that it was planning to raise $1 billion through a share sale for the acquisition of more Ether coins.

In a regulatory filing on Friday, SharpLink Gaming, Inc. (NASDAQ:SBET) said that it intends to use a substantial amount of the proceeds to acquire Ether, while the balance will be used to fund working capital needs, general corporate purposes, operating expenses, and core affiliate marketing operations.

“Ether will serve as the company’s primary treasury reserve asset. The company believes this strategy will allow the Company to diversify reserves, enhance capital efficiency, and align with emerging financial technologies,” it said.

The share sale followed the company’s disclosure on May 27 that it entered into a securities purchase agreement with certain investors for the private placement of more than 58 million common shares at a price of $6.15 apiece, and pre-funded warrants of more than 10.4 million at $6.1499 per pre-funded warrant. Combined, the transaction amounted to $425 million.

Overall, SBET ranks 1st on our list of firms that led last week’s charge. While we acknowledge the potential of SBET, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SBET and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.