SharpLink Gaming, Inc. (SBET) saw a sharp decline of 8.65% on Tuesday, closing at $18.38 per share due to investor concerns over its recent acquisition of Ethereum at a price well above market value.

The company purchased 143,593 ETH coins last week at an average price of $4,648, 11.5% higher than the current market price, increasing its total ETH ownership to 740,760 coins.

To finance the acquisition, SharpLink Gaming raised $1.001 billion, with over $84 million remaining unused. However, the company reported a significant net loss in the second quarter, with operating losses driving a more than 11,100% increase in net loss from continuing operations.

Revenues also declined by 29% to $697,291 in the same comparable period. Despite the potential of SBET as an investment, other AI stocks may offer higher returns with less downside risk. For more information on a promising AI stock, check out our free report.

Read more at Yahoo Finance: SharpLink (SBET) Falls Alongside ETH Prices