Currently, quant funds are mindlessly long ETH and short SBET. Market makers entrusted with additional issuance are only hedging and lack the ability to manipulate the market. The management from the crypto space doesn't understand the stock market well and doesn't know how to play with market makers, indicating that SBET is also lagging behind BMNR in understanding additional issuance.
The next thing to watch is whether the flywheel of "stock price rise - additional issuance - buying coins to promote stock price rise" can be activated. As SBET buys more and more ETH, if the stock price continues to fall or fails to rise, it means the premium narrative has collapsed, and it may just become a 1:1 ETH shadow stock.
If there are enough likes, I will explain why being long ETH and short SBET / long BTC and short MSTR is the risk-free arbitrage that quant funds love the most.
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