Sharplink's announcement to stake part of its $3.6 billion Ethereum treasury on Linea has not been well received by investors, with the company's shares dropping 11% to $15.73 after the news. A significant 82.5% of users on a prediction market doubt Sharplink will reach its 1 million ETH goal by September 16, as the current treasury stands at 837,230 ETH. Analysts attribute the lack of investor interest to ongoing share dilution caused by aggressive equity financing, leading to concerns about the attractiveness of the stock. Sharplink has been issuing new shares to fund ETH acquisitions, which dilutes the value of existing shares. Despite preferring long-term strategies, most investors currently lack confidence in the operational risks associated with new staking platforms like Linea. With over 2,318 ETH earned in staking rewards since June on the Ethereum mainnet, the potential benefits of moving to Linea seem less compelling for existing investors compared to the risks they perceive. The company’s current strategy and the overall market sentiment suggest a cautious approach from investors toward its plans for staking on a new platform.

Source 🔗