Nasdaq-listed company SharpLink Gaming (SBET), which is seeking an Ethereum reserve strategy, plummeted by approximately 70% in after-hours trading on Thursday following the submission of new documents to the U.S. 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 stock from more than 100 shareholders related to its private equity investment (PIPE) financing. The market initially believed that the statement indicated that PIPE investors had sold their holdings. However, Joseph Lubin, Chairman of the Board, posted on the X platform that the market had "misread" the S-3 document, which only pre-registers shares for potential resale. This is a standard procedure following PIPE transactions in traditional finance and does not represent actual sales.

Earlier this month, the company raised $450 million through PIPE financing, with investors including ConsenSys, Galaxy, and Pantera Capital among many institutions. The financing 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 Chairman of the Board.

As of the time of this report, SBET's price in after-hours trading was $10.46, down 67.85% compared to the closing price of $32.53.