SharpLink Gaming (NASDAQ: SBET) climbed Friday after TD Cowen initiated coverage with a “buy” rating, citing the company’s unusual blend of cryptocurrency exposure and sports betting operations.
Shares were up 2.65% in mid‑day trading, a modest rebound for a stock still down 28% year‑to‑date. TD Cowen set a $16 price target, suggesting the stock could more than double from its April 9 close. The firm launched coverage on several cryptocurrency treasury companies, with SharpLink standing out for its ties to the wagering sector.
The Minnesota-based company provides affiliate management services for iGaming and online sports betting operators. Last year, SharpLink shifted its strategy by accumulating a large position in Ether, effectively transforming itself into a digital‑asset treasury business. It is now one of the largest corporate holders of Ethereum, the world’s second‑largest cryptocurrency by market value.
SharpLink’s pivot mirrors the model popularized by Michael Saylor’s MicroStrategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin. Some analysts have even dubbed SharpLink “the MicroStrategy of Ethereum.”
Staking Income Helps Offset Ether Volatility
As of year‑end, SharpLink held 864,597 Ether, making it the second‑largest publicly traded Ether holder as of March 6. That concentration ties the company’s performance closely to Ether’s price, which has struggled in recent months.
TD Cowen noted that SharpLink can blunt some of that volatility through staking income. The company generated $15.3 million in staking revenue in the fourth quarter, a roughly 50% increase from the prior period. The firm said that income stream helps cover operating losses during periods of weak crypto pricing and differentiates SharpLink from other digital‑asset treasury companies.
Staking allows Ether holders to lock up tokens to help secure the network, earning yield in return. The process underpins Ethereum’s proof‑of‑stake system and effectively turns Ether into a yield‑bearing asset for participants.
Additional Highlights
TD Cowen also pointed to SharpLink’s dual exposure to sports betting and cryptocurrency, though the market has largely focused on the latter since the company repositioned itself as a crypto treasury operator.
SharpLink ended last year with $28.5 million in cash and $1.9 million in USDC stablecoins, giving it what analysts described as a solid balance sheet.
