Am I wrong here? May 19: SBET market cap: 2.93 × 698,600 = 2 million USD (outstanding shares according to Yahoo Finance) May 20: SBET prices 1.53M shares at $2.94 in a public offering. May 27: SBET prices 69.1M shares at $6.15 in a private placement, intending to use the funds to acquire Ethereum. May 30: SBET market cap: (698,600 + 1.53M + 69.1M) × 76.7 = 71.3M × 76.7 = 5.5 billion USD, corresponding to a 275,000% increase in market cap compared to less than 2 weeks ago. At the high point during the day, SBET market cap was 71.3M × 124.12 = 8.85 billion USD. Investors in the private placement have, in less than two weeks, turned a $2 million company into a $5.5 billion company, corresponding to a gain of $5.5B – 69.1M × $6.15 = $5.1 billion. At the current market cap, investors are paying a premium for the promised Ethereum of $5.5B / (69.1M × $6.15) – 1 = 1,200%. Everyone can buy Ethereum through Coinbase or any other platform without paying any premium. I would expect this kind of compensation over less than 2 weeks for someone who cured cancer—not for someone who promises to do something anyone can do wit no effort. Be careful out there. This market is insane.
Posted about it on Thursday on the Bitcoin topic. From almost de-listed to ......... the moon:- Bitcoin Price Thread Though was wrong about it being Bitcoin that they were buying.