Key Takeaways:
- SBET added to Russell 2000 and Russell 3000, effective June 29
- Company holds one of the largest corporate Ethereum treasuries globally
- Q1 EPS missed by 424% as crypto accounting rules distorted earnings
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Sharplink joins Russell 2000 as Ethereum treasury draws $12.2 trillion in tracking
Sharplink (SBET) rose 0.24% to $6.24 after FTSE Russell confirmed the company's inclusion in the Russell 2000 and Russell 3000 indexes, bringing renewed attention to its Ethereum-focused treasury strategy. The stock touched an intraday high above $6.50 before paring gains. The addition follows the preliminary reconstitution roster released May 22 and takes effect after the market close on June 29.
"Index membership typically enhances institutional awareness and facilitates access to passive investment flows," according to FTSE Russell, which noted that approximately $12.2 trillion in assets track or benchmark against Russell U.S. indexes. The Russell 2000 is the premier benchmark for tracking U.S. small-capitalization equities.
SBET reported a first-quarter loss per share of $3.25, missing the $0.62 consensus estimate by 424%, while revenue surged 1,628% year-over-year to $12.06 million — still 17.4% below the $14.6 million estimate. The earnings deficit reflects U.S. accounting rules requiring fair-value measurement of digital assets, which subjects quarterly net income to cryptocurrency price fluctuations. Ethereum traded at $2,027, down more than 4% in the last 24 hours, with retail sentiment on Stocktwits remaining in the bearish zone.
The company operates both an Ethereum treasury platform and an affiliate marketing division, creating direct correlation between SBET's valuation and Ether's price movements. Sharplink said it earned 427 ETH in staking rewards this week. The index inclusion positions SBET alongside a wave of crypto-treasury companies entering benchmark indexes, mirroring the path of Michael Saylor's Strategy (MSTR), which joined the Russell 1000 in June 2024. Other crypto-linked additions in the same reconstitution cycle include Gemini Space Station, Galaxy Digital, IREN Limited, CoreWeave, and Soluna Holdings. Fellow Ethereum treasury company Bitmine Immersion Technologies (BMNR) also joined the Russell 3000 in the same reconstitution.
SBET's market capitalization stands at approximately $1.23 billion, with shares down 39% over the trailing six months near 52-week lows. Wall Street projects the company will achieve profitability this fiscal year, with consensus EPS estimates of $2.16. The index inclusion could drive passive buying from funds tracking the Russell 2000, potentially improving liquidity and institutional visibility for the small-cap crypto treasury play.
This article is for informational purposes only and does not constitute investment advice.
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