"ETH Microstrategy" SharpLink Gaming files with the SEC to report "PIPE investors dumping shares," causing the stock price to plummet by approximately 70% after-hours.

BlockBeats reports that on June 13, SharpLink Gaming (SBET), a Nasdaq-listed company pursuing an Ethereum reserve strategy, saw its stock plummet by approximately 70% in after-hours trading on Thursday following the submission of new filings to the U.S. SEC.

According to reports, the company filed an S-3ASR registration statement, which allows for the resale of up to 58,699,760 shares tied to its private investment in public equity (PIPE) financing by over 100 shareholders. The market initially interpreted this filing as an indication that PIPE investors had already sold their holdings. However, Chairman of the Board Joseph Lubin posted on the X platform, stating that the market had "misread" the S-3 document. He clarified that the filing merely pre-registers shares for potential resale and is standard procedure following PIPE transactions in traditional finance, not evidence of actual selling.

Earlier this month, the company raised $450 million through PIPE financing. The round included investments from institutions such as ConsenSys, Galaxy, and Pantera Capital. The funds will be used to acquire ETH as its reserve asset. Ethereum co-founder and ConsenSys CEO Joseph Lubin also joined the company as Chairman of the Board.

As of the time of writing, SBET's after-hours trading price stands at $10.46, representing a 67.85% drop from its closing price of $32.53.