Consensys, the software company controlled by Joe Lubin, has sold its entire common-share position in SharpLink for about $48 million, according to Protos. Lubin is also chairman of SharpLink.
Regulatory filings cited in the report show that Consensys sold all 5.7 million SBET common shares it held at $8.39 each, a price 93% below SharpLink’s May 2025 peak. As of the previous close referenced in the report, the stock had fallen another 11%. Lubin and holders linked to him told regulators the sale was made "to liquidate their position."
From ETH treasury trade to steep drawdown
SharpLink was a gambling marketing company before becoming associated with an ETH treasury stock narrative. Protos said the stock surged roughly 40x last year during a speculative run in crypto treasury names. Less than 17 months ago, Consensys was leading a $425 million deal alongside Pantera’s Dan Morehead, Galaxy Digital’s Mike Novogratz, Arrington Capital’s Michael Arrington, and GSR’s Cristian Gil.
That backing did not stop the stock from losing 94% from last year’s peak. Lubin had said last year that ETH treasury stocks such as SharpLink could become "Berkshire Hathaway-style" vehicles.
Even after the sale, Lubin still holds less than 5% of SharpLink, including about 5 million shares directly and about 3.5 million shares of warrant coverage through his Consensys Software.
From $124.12 to $7.46
After SharpLink announced its ETH deal on May 27, 2025, the stock jumped 412% in a single session to about $34. It then reached an intraday high of $124.12 on Friday, May 30, 2025. By the latest close cited in the report, the shares were at $7.46.
The first major warning came two weeks after the May 2025 peak. After SharpLink filed a resale registration statement with the US Securities and Exchange Commission, the stock dropped from $33 to below $11 in a single after-hours session. At the time, Lubin said the filing was procedural and that neither he nor Consensys had sold. Consensys has now sold.
SharpLink said in a post on X: "$SBET is built for a future where $ETH plays a foundational role in global finance. We believe that long-term alignment, transparency, and disciplined accumulation are what institutional investors value most."
Losses mount as MSCI puts company on removal watchlist
Management had described SharpLink’s treasury strategy as a sign that "a new Ethereum era is taking shape," but the company’s financial results have deteriorated. Protos reported that SharpLink lost $735 million in 2025 and has already posted quarterly losses in 2026.
MSCI has also added SharpLink to its removal watchlist after adopting rules that limit so-called non-operating companies from its indexes by November 2026. If the company is removed, certain passive investment flows would no longer benefit SharpLink.