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SharpLink issuance of convertible bonds may temporarily ease the pressure on SBET stock price.
On August 1st, Joseph Lubin, Chairman of the Board of SharpLink and CEO and Founder of a certain company, stated in an interview that SharpLink has been selling its shares at ATM (At-The-Market) so far, which has led to the dilution of SBET investors' equity. This has triggered panic and concern, causing the stock price to fall from $37 to below $20 in less than two weeks.
The issuance of convertible notes by SharpLink means they will be able to raise funds without immediately diluting equity. ( Convertible bonds carry debt risk and may result in future dilution after conversion ), but in the short term, this may stabilize SBET (the number of shares entering the market decreases).