Key Highlights
- Sharplink, an Ethereum treasury firm, and Forward Industries, associated with Solana, will be added to the Russell 3000 and 2000 indexes.
- These firms join BitMine Immersion Technologies as the newest crypto treasury companies included in the index reconstitution.
- On Tuesday, Sharplink's stock fell, while Forward Industries experienced a slight increase in share price.
Sharplink, a publicly traded company focusing on Ethereum treasuries, will be incorporated into the Russell 2000 and 3000 indexes effective June 29, as announced on Tuesday.
This addition comes after BitMine Immersion Technologies, another Ethereum treasury firm, was also included in the Russell 1000 index, which tracks the top 1,000 U.S. companies by market capitalization.
Joseph Chalom, CEO of Sharplink, stated, "Joining the Russell 2000 and Russell 3000 is a significant affirmation of Sharplink's institutional-grade ETH treasury strategy, which we believe will broaden SBET's shareholder base and enhance our access to capital markets."
The company currently holds 874,351 ETH, valued at approximately $1.8 billion, but its market cap stands at around $1.22 billion, indicating that it is trading at a discount relative to its Ethereum assets, as reported by Yahoo Finance.
Forward Industries, which focuses on Solana, will also see its inclusion in the Russell 2000 and 3000 indexes, as announced by the firm.
Previously a medical design company, Forward Industries acquired $1.58 billion in SOL last year at an average price of about $232 per token. However, SOL is now priced at $83.78, reflecting a 64% decrease since the acquisition.
This means its Solana holdings are currently valued at around $588 million, significantly exceeding its market cap of $350 million. This valuation positions it approximately 2.4 times larger than the smallest member in the Russell 2000, according to the index fund’s website.
The inclusion of these firms in the Russell Indexes places them within a network of U.S. indexes with benchmarks or investments totaling over $12.2 trillion.
Ryan Navi, CEO of Forward Industries, commented, "We believe that index inclusion will broaden our shareholder base, enhance trading liquidity, and increase our visibility among long-term institutional investors."
Following this news, the stocks of both companies reacted differently; Sharplink (SBET) shares fell about 0.8% to $6.18 each, while Forward Industries (FWDI) shares rose by 2.62%, closing at approximately $4.70.