SharpLink Gaming filed SEC filings against "PIPE investors selling their holdings", causing shares to plunge about 70% in after-hours trading.

On June 13, SharpLink Gaming (SBET), a Nasdaq-listed company that is seeking an Ethereum reserve strategy, plunged about 70% in after-hours trading on Thursday after filing new filings with the SEC.
It is reported that the company filed an S-3ASR registration statement, which allows the resale of up to 58,699,760 shares of more than 100 shareholders related to its Private Equity (PIPE) financing. At one point, the market believed that the statement indicated that PIPE investors had sold their holdings. Board Chairperson Joseph Lubin wrote on the X platform that the market "misread" the S-3 document, which is only pre-registered shares for potential resale. It is standard procedure after PIPE transactions in the traditional financial sector and does not represent an actual sell-off.
Earlier this month, the company raised $450 million through PIPE, with investors including ConsenSys, Galaxy, and Pantera Capital, which will be used to acquire ETH as its reserve asset. Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, also joined the company as chairperson of the board.
As of press time, SBET was trading at $10.46 in after-hours trading, down 67.85% from its closing price of $32.53.