Sharplink Gaming plans to sign up for stock resale investment in ETH遭“误解” and the stock price experienced a big dump of 73%.

Gate News bot reported that the stock price of sports betting platform Sharplink Gaming fell by 73% in after-hours trading on Thursday, after the company applied to sign up a large number of stocks for resale to make a big bet on Ether.

However, Sharplink Gaming Chairman and Consensys CEO Joseph Lubin stated that market observers misunderstood this document.

Lubin stated in a blog post on Wednesday, “Some people misunderstood” the S-3 form that Sharplink submitted to the ( SEC). The form records the potential resale of nearly 58.7 million shares of common stock.

He reiterated that Sharplink is registering “potential resale” stocks, not actual sales. “This is the standard PIPE post-process in traditional finance (Tradfi), and not an indication of actual sales,” Lubin said.

On the occasion of this submission of documents, the company is preparing for an ETH acquisition worth $2,503, which is part of its newly announced financial strategy based on Ethereum.

According to Google Finance, the stock price of Sharplink Gaming (SBET) closed down 12.25% on Thursday, at $32.53, and further experienced a big dump of 73% in after-hours trading, dropping to less than $8 at the time of filing.

Since then, the company’s stock price has slightly rebounded, dropping 67.6% as of the publication of this article, with a trading price of $10.55.

Matt Corva, the General Counsel of ConsenSys, stated that the filing “does not reflect anyone’s sales figures; this situation may happen or may never happen, I am not sure. But this is just a basic filing.”

Source: Cointelegraph