Sharplink Gaming (SBET) shares slipped 30% in early trading Monday, returning just a small bit of last week’s 2,000% surge.
Historic Movement High – Shares that move from under $3 to over $100 at one point have come after news that Sharplink is raising $450 million to launch ether
ETH$2,506.40
Financial Strategy with Ether co-founder Joseph Rubin joined the company’s board of directors as chairman.
The company announced its funding closure Monday morning.
Sharplink sold 69 million shares to raise capital. Pharmaceutical Antrepreneur Martin Shkreli pointed out last week that most of these stocks are still unable to trade freely. “The 69 million shares issued will be subject to the registration rights agreement, which will not be valid for several months. These shares cannot be traded.
When a company issues new shares through private placement, these shares often come with restrictions. It cannot be relocated in the open market until the company has submitted it and cleared the documents with the regulatory authority. That process, known as stock registration, can take several months. In the meantime, a thin pool of tradeable stocks could lead to unstable price fluctuations.
In this case, Sharplink’s Public Float (the number of shares that investors can actually buy and sell) is still very small. That low float could have fueled last week’s eye-opening rally when traders scrambled to enter.
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