SBET has recently been financing through ATMs, which is relatively mild, and the dilution effect is quite low. The market has overreacted a bit; a sudden targeted issuance of 5 billion USD is not very realistic, as its own market value cannot support it.
As a leader in ETH micro-strategy, SBET is actually more suitable for the MSTR model of "ATM + convertible bonds + structured derivatives," which is feasible in the long term.
At the same time, it uses "high mNAV + high volatility + ETH on-chain yield-enhanced Staking + LSD + DeFi" as the underlying support.
Let's talk about last night's SBET crash.
As mentioned earlier, in order to accelerate fundraising, these ETH micro-strategies will do whatever it takes to raise funds by issuing additional shares to the market in the shortest possible time.
The last time SBET shares were priced at $60, a private placement of 425 million U of shares was issued, costing institutions only 6.15, and suddenly panic hit 10.
And this time it chose to sell 5 billion U.
The market was worried that the scene would be repeated, so it caused panic all of a sudden, and even drove other ETH microstrategies down.
In fact, in the final analysis, many of the institutions that tend to subscribe to these stocks on the market are not here to take a fancy to the company's value of ETH, but the current stock price of the company is just $35, and the secondary liquidity is good, but they are willing to sell it to me for $10, and they can unlock it soon.
Unlike BNB microstrategy, ETH currently has too many channels to allow traditional funds to participate, such as: spot ETFs, Coinbase institutional custody, UK licensed OTC, etc.
If institutions are really optimistic about ETH, they will actually buy ETH directly. This is why it has been mentioned many times before to take good ETH, even if you miss a series of ETH micro-strategies.
Therefore, not only SBET, but also all ETH micro-strategies are constantly distributing stocks, raising funds, and buying ETH, depending on the degree of distribution and additional issuance of shares, whether the market can eat it.
3.1K
1
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.